Question
Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the
Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in community varies. The utility costs for one of the company's stores are listed below for the past six months.
Month Total Hours Operation Total Utility Costs
January 550 3,24
Feb 600 3,400
March 700 3,800
April 500 3,200
May 450 2,700
June 400 2,600
Use the high-low method to estimate the cost behavior for the store's utility costs. Express te cost behavior in formula form (Y=a+bX). What is the variable utility cost per hour of operation?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
