uisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows:

TanningMonthAppointmentsTotal Cost

January700$1,752

February2,100$2,130

March3,100$2,760

April2,400$2,500

May1,500$1,700

June2,300$2,275

July2,190$2,200

August3,100$2,620

Required:

2.Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. Round the variable rate per tanning appointment to the nearest cent and use it in your further calculations. Round the fixed cost per month to the nearest dollar and use it in your further calculations.

Variable rate for tanning$

Fixed cost per month$

3.Using the variable rate and fixed cost, what is the cost formula for tanning services?

4.Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? If required, round the final answers to the nearest dollar.

Total predicted cost for September$

Total fixed cost for September$

Total predicted variable cost for September$

5.Which of the following statements is correct when luisa uses the high-low method to estimate the costs?