Swim-Safe Company hires several instructors who provide weekly one-hour private swim lessons to individuals. The company would
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Swim-Safe Company hires several instructors who provide weekly one-hour private swim lessons to individuals. The company would like to estimate costs associated with its swimming lessons on a weekly basis.
Assume costs for towels, snacks, drinks, and instructor wages are variable costs.
The accounting records indicate the following costs were incurred last week for 250 customer lessons.
Required
a. Use account analysis to estimate total fixed costs per week, and the variable cost per lesson. State your results in the cost equation form Y = f + VX.
b. Estimate the total costs for this coming week assuming 220 lessons will be provided.
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