Annie runs a fitness and nutrition center. She has learned that overhead costs are a function of

how many clients she serves each month. She gathered the following data for the last six months

and needs to forecast overhead costs for November and December based past history. Annie uses

the high$-$low method to estimate her overhead costs and has asked you to confirm her

calculations.

Month Number of Clients Store Overhead Costs

May $210$ $ $22,100$

June $175$ $ $26,090$

July $158$ $ $18,820$

August $130$ $ $19,150$

September $185$ $ $22,133$

October $200$ $ $23,035$

November $($est$.)225?$

Required:

$1)$ Calculate variable overhead cost per unit.

$2)$ Calculate fixed overhead cost per month.

$3)$ Use your answers to parts $1$ and $2$ to determine the store$$s contribution margin

and net operating income for NOVEMBER. Sales are estimated to be $$100,000,$

all variable costs other than overhead are $$40,000$; fixed selling and

administration costs are $$25,000$