Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years: Number of

Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years:

Number of Visitors per Year: (thousands) Maintenance Costs ($000)
1,870 $ 3,683
2,050 4,052
3,550 6,875

Required:
(a)

Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor. (Enter your answers in dollars not in thousands of dollars.Round your variable cost answer to 2 decimal places.)

(b)

The company expects a record 2,800,000 visitors next year. What would be the estimated maintenance costs? (Enter your answers in dollars not in thousands of dollars.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Alan Millichamp, John Taylor

11th Edition

1473749301, 978-1473749306

More Books

Students also viewed these Accounting questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago