Question
Suzy's Cool Treatz is a snow cone stand near the local park. To plan for thefuture, the owner wants to determine her cost behaviour patterns.
Suzy's Cool Treatz is a snow cone stand near the local park. To plan for thefuture, the owner wants to determine her cost behaviour patterns. She has the following information available about her operating costs and the number of snow cones served.
Month Number of snow cones Total operating costs
January 3,500 $5,000
February 3,800 $4,800
March 5,000 $6,800
April 3,600 $5,450
May 4,700 $6,200
June 4,250 $5,950
Suzy uses the highlow method to determine her operating cost equation and sells4,500 cones in a month for$3.00 each.
Which of the following would beSuzy's CoolTreatz's contribution margin be if Suzy prepared a contribution margin income statement for themonth?
A.
$5,985
B.
$7,300
C.
$8,100
D.
$9,750
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