HIGH-LOW METHOD Luisa Crimini has been operating a beauty shop in a college town for the past 10 years.

Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed but found that tanning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows:

Month Tanning Appointments Total Cost ($)

January 700 1,758 February 2,000 2,140 March 3,100 2,790 April 2,500 2,400 May 1,500 1,800 June 2,300 2,275 July 2,150 2,200 August 3,000 2,640 Required:

. Which month represents the high point? The low point?

. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month.

. Using your answers to Requirement 2, write the cost formula for tanning services.

. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement