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ETutor is an online tutoring service provider that is particularly popular with college students. The company is interested in estimating the fixed and variable components
ETutor is an online tutoring service provider that is particularly popular with college students. The company is interested in estimating the fixed and variable components of its tutoring services costs. The manager believes that these costs are driven by the number of hours of tutoring services provided. The following information was gathered for the last six months of business Month January February March April May une Number of Hours Tutoring costs 25,000 41,000 29,000 31,000 34,000 18,000 $308,00e0 420,000 352,000 373,000 378,000 252,000 Required 1) Compute the average tutoring cost per hour for the six-month period. (Round the average tutoring cost per hour to two decimal points.) 2) Use the high-low method to estimate the total fixed cost and the variable cost per hour. (Round the variable cost per hour to two decimal points.) 3) Name one advantage and one disadvantage of the high-low method 4) Describe the scattergraph method that can be used to analyze mixed costs
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