Question
Answer the following question(s) using the information below. Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future,
Answer the following question(s) using the information below.
Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behaviour patterns. She has the following information available about her operating costs and the number of snow cones served.
Month | Number of snow cones | Total operating costs |
January | 3,500 | $5,000 |
February | 3,800 | $4,800 |
March | 5,000 | $6,800 |
April | 3,600 | $5,450 |
May | 4,700 | $6,200 |
June | 4,250 | $5,950 |
Suzy uses the
highlow
method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.
Which of the following would be Suzy's Cool Treatz's contribution margin be if Suzy prepared a contribution margin income statement for the month?
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