Penny Davis runs the Shear Beauty Salon near a college campus. Several months ago, Penny used some unused space at the back of the salon and bought two used tanning beds. She hired a receptionist and kept the salon open for extended hours each week so that tanning clients would be able to use the benefits of their tanning packages. After three months, Penny wanted additional information on the costs of the tanning area. She accumulated the following data on four accounts: Wages Supplies and Maintenance Equipment Depreciation Electricity Tanning Minutes Number of Visits January $1,843 $1,434 $120 $365 4,089 417 February 1,716 1,944 120 450 3,870 366 March 1,854 4,104 120 675 6,756 552 Penny decided that wages and equipment depreciation were fixed. She thought supplies and maintenance would vary with the number of tanning visits and that electricity would vary with the number of tanning minutes.

3. In April, Penny predicts there will be 357 visits for a total of 3,780 minutes. What is the total cost for April? If required, round your answer to the nearest dollar. $

4. Suppose that Penny decides to buy a new tanning bed at the beginning of April for $9,024. The tanning bed is expected to last four years and will have no salvage value at the end of that time. What will be the new equation for total cost? If required, round your answers to the nearest cent.

Cost = $ + $ (visit) + $ (minute)

What is the new expected cost in April based on the prediction provided in Requirement 3 (above)? When required, round your answer to the nearest dollar. $