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Bell's Brewery is a locally owned store specializing in various beer beverages. Most of its business comes from orders from various regional and national
Bell's Brewery is a locally owned store specializing in various beer beverages. Most of its business comes from orders from various regional and national vendors. While Bell's produces everything from stout to ales, the special summer ale is the company's biggest source of revenue. A portion of Bell's operating information for the company's last year follows: Month Number of Beverages Operating Cost January 150 $ 4,880 February 195 5,865 March 175 5,765 April 525 8,595 May 655 9,230 June 720 9,725 July 420 6,225 August 295 6,010 September 355 6,125 October 255 5,975 November December 250 165 5,935 4,925 Required: 3. Using the high-low method, calculate the store's total fixed operating costs and variable operating cost per beverage. 4. Using the high-low method results, calculate the store's expected operating cost if it manufactured 475 beverages.
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