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Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop

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Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Required: 1. Which month represents the high point? The low point? 1. Which month represents the high point? The low point? High point Low point 2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. Round the variable rate per tanning appointment to the nearest cent. 3. Using the variable rate and fixed cost, what is the cost formula for tanning services? (1) 4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? In your calculations, round variable cost per unit to the nearest cent. If required, round this final answers to the 5. Which of the following statements is correct when luisa uses the high-low method to estimate the costs? 5. Which of the following statements is correct when luisa uses the high-low method to estimate the costs? High-low method is based on only two data points and Ignores all of the other data. Lulsa might be wise to calculate the cost formula 6 to 12 months later after a longer time period has elapsed since starting It appears there is significant excess tanning bed capacity in stow months or machines are being run to their utmost All of the above

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