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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:
- Using the high-low method, estimate the variable cost per Web site hit and the monthly fixed costs.
- Determine the cost equation to estimate the customer Web site expenses for Costco Online.
- If Costco expects 9,500 Web site hits for July, what are their anticipated costs for July?
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Step: 1
1 Calculate High and Low Values Highest website cost 9032 March Lowest website cost 8420 May Highest ...Get Instant Access to Expert-Tailored Solutions
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Step: 3
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