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The Bed and Breakfast Company is trying to understand the cost behavior of their food expenses. See the following information from the last 6 months.
The Bed and Breakfast Company is trying to understand the cost behavior of their food expenses. See the following information from the last 6 months.
| Month | # of Guests | Food Cost |
| January | 15,000 | $72,000 |
| February | 14,000 | $73,000 |
| March | 12,500 | $65,000 |
| April | 16,500 | $84,000 |
| May | 17,000 | $83,000 |
| June | 15,500 | $76,000 |
Use the high-low method to estimate the amount of the food cost that are FIXED costs.
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