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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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