Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year:

Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year:

Month Number of Appointments Total Cost
January 475 $ 6,600
February 150 5,300
March 375 6,800
April 300 6,050
May 350 5,950
June 250 5,500

Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)

A) Variable Cost per Unit:

B) Fixed Cost:

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

Managerial Accounting

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

2nd edition

9780077493677, 78025516, 77493672, 9780077826482, 978-0078025518

More Books

Students also viewed these Accounting questions

Question

Briefly describe operating LCs, revolving LCs, and term loans.

Answered: 1 week ago

Question

Explain the importance of Human Resource Management

Answered: 1 week ago