Question
Pelicans Ice is a snow cone stand near the local park. To plan for thefuture, it wants to determine its cost behavior patterns. It has
Pelicans Ice is a snow cone stand near the local park. To plan for thefuture, it wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served.
Month
Number of snow cones
Total operating costs
January
6,400
$5,980
February
7,000
$6,400
March
4 comma 000
4,000
$ 5 comma 000
$5,000
April
6,900
$6,330
May
8 comma 000
8,000
$ 9 comma 000
$9,000
June
7,250
$6,575
Using the highminus
low method, the monthly operating costs if Pelicans sells 11 comma 000
11,000 snow cones in a month are
A.
$ 19 comma 000
$19,000
B.
$ 12 comma 000
$12,000
C.
$ 1 comma 000
$1,000
D.
$ 11 comma 000
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