Question
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
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: Tanning Month Appointments Total Cost January 700 $1,748 February 2,100 $2,140 March 3,300 $2,710 April 2,600 $2,400 May 1,600 $1,800 June 2,300 $2,275 July 2,120 $2,100 August 3,000 $2,640 Required: 1. Which month represents the high point? The low point? High point Low point In your calculations, round per unit costs to the nearest cent. 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 and use it in your further calculations. Round the fixed cost per month to the nearest dollar and use it in your further calculations. Variable rate for tanning $fill in the blank 3 per tanning appointment Fixed cost per month $fill in the blank 4
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