Main Menu Contents Grades Course Contents Timer Notes Evaluate Feedback Print Info In Part A of this problem, you are asked to do account analysis based on cost and activity information that you are given for one particular month. In Part B, you are asked to do the high-low method based on cost and activity information that you are given for two particular months. NOTE that the data that you must use to get the cost function parameters for Part A are completely different than the data you must use for Part B. However, for both parts, you must make predictions for the same month. Each part of the problem is worth five points and has two questions. There is no partial credit within a part, so to get the five points for a part, you must answer both questions correctly. You get six tries per part (not per individual question). from the start station Lorenzo operates a brushless car wash. Incoming cars are put on an automatic, continuously moving conveyor belt. A car is washed as the conveyor belt carries i to the finish station. After the car moves off the conveyor belt, workers dry it and clean and vacuum the inside. Workers are managed by a single supervisor. Lorenzo's accountant wants to estimate costs in December, when 9,900 cars are expected to be washed. She tried two different methods to estimate December costs, account analysis and high-low, with number of cars washed as the independent variable for both methods. To estimate the cost function parameters using account analysis, she analyzed actual costs in June, when 11,600 cars were washed. Her analysis revealed the following total fixed costs and total variable costs for each cost item: Cost Item Total Cost Variable Cost $4,640 $4,640 Soap, cloths, and supplies Water $6,960 $6,960 Car wash labor $30,160 $32,610 $12,800 Power for conveyor $10,440 Supervisor and cashier $4,000 $0 To estimate the cost function parameters using high-low, she used the following total cost and activity data from July and August: Cost Item July Soap, cloths, and supplies $2,430 August $3,450 $5,750 Water $4,050 Car wash labor $29,250 $21,430 $10,400 Power for conveyor $13,800 Supervisor and cashier $3,850 $3,850 Total $42,160 $56,100 Cars washed 8,100 11,500 REQUIRED (ROUND PER-UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR.] Part A (6 tries; 5 points) 1. Using account analysis, what is the accountant's estimate of total fixed costs for December? 2. Using account analysis, what is the accountant's estimate of variable costs per unit for December? Submit Answer Tries 0/6 Part B (6 tries; 5 points) 1. Using the high-low method, what is the accountant's estimate of total fixed costs for December? 2. Using the high-low method, what is the accountant's estimate of total variable costs for December? Submit Answer Tries 0/6
