Question
Supply costs at Lattea Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,668 $28,582 April 11,464 $28,416 May 11,996 $28,840 June 14,100
Supply costs at Lattea Corporation's chain of gyms are listed below:
Client-Visits Supply Cost
March 11,668 $28,582
April 11,464 $28,416
May 11,996 $28,840
June 14,100 $28,934
July 11,728 $28,643
August 11,214 $28,242
September 12,008 $28,841
October 11,699 $28,599
November 11,847 $28,724
Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to: (Round your Variable cost per unit to 2 decimal places.)
$0.28 per client-visit; $25,045 per month
$.82 per client-visit; $18,492 per month
$1.93 per client-visit; $28,644 per month
$0.24 per client-visit; $25,550 per month
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