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Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost
Atwood Dairy Bar sells its famous soft-serve ice cream cones near a marina and resort area. The owner, Theresa, wants to determine the cost behaviour patterns to help planning for the next summer season. She has the following information available about the operating costs and the number of soft-serve cones served. (Click the icon to view the information.) Theresa uses the high-low method to determine the operating cost equation and sells 8,000 cones in a month for $2.00 each. What would the operating income be at Atwood Dairy Bar if the owner prepared a contribution margin income statement for that month? A. $2,000 B. $16,000 C. $10,425 D. $14,000 Information Month Number of softserve cones Total operating costs April 8,200 $5,200 May 8,600 $5,500 June 7,500 $4,500 July 9,700 $6,000 August 8,900 $5,900 September 5,700 $5,000 Print Done -
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