Question
M5-10 (Algo) Estimating Cost Behavior Using High-Low Method [LO 5-3] Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments
M5-10 (Algo) Estimating Cost Behavior Using High-Low Method [LO 5-3] Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month Appointments Number of Total Cost January 150 $ 5,550 February 225 5,950 March 275 6,950 April 450 6,750 425 325 6,650 6,100 May June Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount. Variable Cost per Unit Fixed Cost
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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