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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:
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