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 Maintenance Costs

image text in transcribed

Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years Maintenance Costs ($000) $ 2,316 Number of Visitors per Year: (thousands) 1,830 2,010 2,700 2,559 3,360 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 "Variable cost" answer to 2 decimal places.) Variable cost per visitor 1.20 Annual fixed cost 1,200 b. The company expects a record 2,000,000 visitors next year. What would be the estimated maintenance costs? (Enter your answer in dollars not in thousands of dollars.) Estimated maintenance costs 3,600

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

Wiley CPAexcel Exam Review Focus Notes Auditing And Attestation 2022

Authors: Wiley

1st Edition

111984858X, 978-1119848585

More Books

Students also viewed these Accounting questions