Item 15

Item 15

Supply costs at Coulthard Corporation's chain of gyms are listed below:

	Client-Visits				Supply Cost
March		11,662			$	28,371
April		11,458			$	28,309
May		11,990			$	28,469
June		13,500			$	28,922
July		11,722			$	28,389
August		11,208			$	28,234
September		12,002			$	28,473
October		11,693			$	28,380
November		11,841			$	28,424

Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to: