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Costco has recently started to take the customer orders over the web site. Following is the past data for first six month: Month Customer Web

Costco has recently started to take the customer orders over the web site. Following is the past data for first six month:

Month

Customer Web site costs

Number of Web site hits

January

$8,960

11,600

February

$8,762

11,270

March

$9,032

11,720

April

$8,942

11,570

May

$8,420

10,700

June

$8,492

10,820

Required:

  1. Using the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs.
  2. Determine the cost equation to estimate the customer Web site expenses for Costco Online.
  3. If Costco expects 9,500 Web site hits for July, what are their anticipated costs for July?

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1 Calculate High and Low Values Highest website cost 9032 March Lowest website cost 8420 May Highest ... blur-text-image

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