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Andrea just employed a new manager for her web business. The manager is new and would like to determine the variable and fixed costs associated

Andrea just employed a new manager for her web business. The manager is new and would like to determine the variable and fixed costs associated with work completed between January to June. Calculate the cost for the past six months: Show all calculations

Month

Number of website hits

Customer website costs

January

28,800

$21,500

February

31,200

$22,500

March

25,200

$19,500

April

26,400

$20,000

May

30,800

$23,000

June

29,000

$21,900

Required:

1. Using the high-low method, estimate the variable cost per website hit and the monthly fixed costs associated with the customer website. 3 marks

2. Using the high-low method, determine the monthly fixed costs associated with the customer website. - 4 marks

3. If Andrea expects 28,000 website hits for July, what are their anticipated customer website costs for July? - 4 marks

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