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Premier Landscapes offers commercial landscaping services and is planning to revise its pricing strategy. Data Available: Spring: Total Costs: $150,000, Number of Projects: 50 Fall:

  • Premier Landscapes offers commercial landscaping services and is planning to revise its pricing strategy.
  • Data Available:
    • Spring: Total Costs: $150,000, Number of Projects: 50
    • Fall: Total Costs: $270,000, Number of Projects: 90
  • Instructions:
    • Determine the variable cost per project and total fixed costs using the High-Low Method.
    • Write a cost equation.
    • Calculate the expected total costs for undertaking 100 projects.
    • Discuss how cost behavior affects pricing decisions for seasonal fluctuations.

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