Sephia operates a full service day spe in a small cologe town. Recenty. Sophia rented space next to her spa and opered a sorky tanning sakon. She anticipated that the costs for the spray tanning service would sormarily be fired, but found that tanning saion costs increased with the number of appointruente. Costi for thes servica over the past 8 months are as foliows: Requiredi 1. Which month represents the high point? The lew point? High point 1. Which month represents the high point? The low point? High poirt Low point In your calculations, round per unit costs to the nearest cent. 2. Using the high-low. method, compute the variable rate for tacining, Next, compute the fixed cosk per month. Found the variable rate per tanning appointment to the nearest cent and use it in your further calculations. Round the fixed cost per month to the neareat dollar and use it in vour further calculations. Vartable rate for tanning 1 per tanning appointment Fxed cost per month 1 3. Using the variabie rate and fixed cost, what is the cost formule for tanning services? ointments using the formula found in Requirement I. or that total cost, how cost for September? If reguired, round the final answers to the nearest 4. Caiculate the total predicted cost of tanning services for September for 2,500 oppointments using the formula found in knewuirement 3 , or that total cour, hese much is the total fixed cost for September? How much is the totat predicted variable cont for Septemiber? tr required, raund the finat answers to the nearest detiar. 5. Calculate the total predicted cest of tanning services for 5 eptember for 3,550 appointments, If required, round the final anawers to the neareat doillar, 3 While the total cost prediction is appointrments of 3,850 in this calculation is : which the high-low method constructed the ceit function 6. Which of the folowing statements is correct when Sophia uset the higbilow methad to entimate the costs? High-low method is based on enly two data points and lgnores all of the ether data. 5 ophia asight be wise to calculate the cost formula 6 to 12 atonths later after a longer time period has eiapsed since It appears there is significant excess tarning bed capacity in slow menths or machines are baing run to their utmost All of the abeve. Sophia operates a full service day spa in a small college town. Aecently, Sophia rented apocin next to her spa and opened a igray tanning salon, She antickated that the costs for the spray tanning service would primaniy be fixed, but found that fanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as foliows? 1. Which manth represents the high point? The low point? itight poont Low paint 1. Which month represents the high point? The low point? High paint Low point In your calculatiens, round per unit cests to the nearest cent. 2. Using the high-ion method, compute the variabie rate for tanning. Neet, compute the find coat per month, Round the varlable rate pee tanning appointment to the nearest cent and use it is vour further calculations. Round the fixed cost per month to the nearest doliar and use it in yeur further calculations. Variabie rate for tanring 1 per tanning appointmient Fived cost per minth 3. Uaing the variatle rate and fiked colt, what is the cost formuis for tanking services? cast for Septeniber? If required, reused the final answers ta the aeareat 4. Caiculate the total predicted cost of tanning services for September for 2,500 appointments aning the fommuta found in Requirement 3 . Or that total cost, how much is the total fixed cost for September? How mach is the total predicted variable cost for Segtember? H reguired, round the finat answers to the nnarest dollar, 5. Calcuiate the fotal predicted cost of tanning services for September for 3,050 appointmenth. If requlred, round the final answers to the aearnst dellar, 1 While the total cost prediction is greater than the prediction from llesuiremest 4, Sophis shodd be concerned that the number of tanking appeintments of 3,950 in the caiculation is than the highest fumber of tanhing appeintments (3,100) cantaineif in the 8 minths af itata vpon whicr the high-low method contructed the toit functian
