Question
Kaiser's Tennis Shoes occasionally has to rent a equipment in order to complete customer orders. They are unsure of how these rental costs are effecting
Kaiser's Tennis Shoes occasionally has to rent a equipment in order to complete customer orders. They are unsure of how these rental costs are effecting the business overall, so they have asked for your assistance in analyzing the company's last six months of equipment rental cost using the high-low method.
Month | Operating Hours | Rental Cost |
January | 65 | $3,800 |
February | 45 | $3,400 |
March | 60 | $3,900 |
April | 55 | $3,200 |
May | 75 | $3,700 |
June | 48 | $3,550 |
Please round final answers to the nearest whole dollar (if applicable) and include appropriate commas and dollar sign (for example $25,000)
1. What is the variable cost per hour to rent the equipment?
2. What is the monthly fixed cost to rent the equipment?
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