Question
Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,667 $28,581 April 11,463 $28,415 May 11,995 $28,839 June 14,000
Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,667 $28,581 April 11,463 $28,415 May 11,995 $28,839 June 14,000 $28,932 July 11,727 $28,642 August 11,213 $28,241 September 12,007 $28,840 October 11,698 $28,598 November 11,846 $28,723 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost, Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates would be closest to: (Round your Variable cost per unit to 2 decimal places.) $1.94 per client-visit; $28,643 per month $.83 per client-visit; $18,374 per month $0.29 per client-visit; $24,927 per month $0.25 per client-visit; $25,432 per month
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