Question
Aladdin Company is a small one-person company that provides elaborate and imaginative wedding cakes to order for very large wedding receptions. The owner of the
Aladdin Company is a small one-person company that provides elaborate and imaginative wedding cakes to order for very large wedding receptions. The owner of the company would like to understand the cost structure of the company and has compiled the following records of activity and costs incurred. The owner believes that the number of weddings catered is the best measure of activity.
Month
Weddings
Catered
Total Costs
Incurred
January
3
$3,800
February
2
$3,600
March
6
$4,000
April
9
$4,300
May
12
$4,500
June
20
$5,200
1) Using the high/low method, Aladdin's variable cost per wedding catered is closest to:
Group of answer choices
A) $82.35 per wedding
B) $80.00 per wedding
C) $88.89 per wedding
D) $260.00 per wedding
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