Question
Water Safety, Inc., hires several instructors who provide weekly one-hour swim lessons to individuals. The company would like to estimate costs associated with its swim
Water Safety, Inc., hires several instructors who provide weekly one-hour swim lessons
to individuals. The company would like to estimate costs associated with its swim lessons on a weekly basis. Assume costs for towels, snacks, drinks, and instructor wages are variable costs. The accounting records indicate the following costs were incurred last week for 250 customer lessons:
Towels, snacks, drinks $1,250
Instructor wages (hourly employees) $3,000
Manager (owner) salary $1,500
Pool rental $2,000
a. Use account analysis to estimate total fixed costs per week, and the variable cost per lesson. State
your results in the cost equation form Y = f + vX by filling in the dollar amounts for f and v.
b. Estimate the total costs for this coming week assuming 220 lessons will be provided
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