Question
Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans Ice wants to determine its cost behavior patterns.
Pelicans Ice is a snow cone stand near the local park. To plan for the future, Pelicans Ice wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served.
Month Number of snow cones Total operating costs
January 6,400 $5,980
February 7,000 $6,400
March 5,000 $ 5,000
April 6,900 $6,330
May 9,000 $ 7,000
June 7,250 $6,575
Using the high-low method, the fixed costs for a month are
A. $ 12,000
B. $ 2,500
C. $ 4,500
D. $ 2,000
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Introduction to Accounting An Integrated Approach
Authors: Penne Ainsworth, Dan Deines
6th edition
78136601, 978-0078136603
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