Angela French owns the ‘Angel Puppy Parlour’, a mobile pet grooming service. She is keen to expand the business and recently approached her local credit union for financial support. In advance of her next meeting with the credit union manager, she has been asked to provide projected costs for running the business. Lacking any knowledge of management accounting, Angela has approached you for help. She has made the following data available to you. 

Month  Activity level (no. of clients)  Total costs

 June  80  €4,100 

July  130  €5,100 

August  60  €3,700

 September  30  €3,100

 October  40  €3,300 

November  100  €4,500 

Required: 

(A) Prepare a scatter graph using the data provided by Angela (note: graph paper not required). Using your graph, determine the approximate monthly fixed cost and approximate variable cost per client. 

(B) Angela anticipates serving 150 clients in December at a sales price of €40 per client. 

(i) Using the high-low method estimate a cost function for the business and determine the estimated total costs for December. 

(ii) Determine the budgeted breakeven point in units and sales revenues for December.