Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of $7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable cost for January? O a. The total fixed cost is $8,000, and the variable cost is $1,700. O b. The total fixed cost is $5,600, and the variable cost is $4,100. O c. The total fixed cost is $4,100, and the variable cost is $5,600. Od. The total fixed cost is $1,700, and the variable cost is $8,000.
Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of $7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable cost for January? O a. The total fixed cost is $8,000, and the variable cost is $1,700. O b. The total fixed cost is $5,600, and the variable cost is $4,100. O c. The total fixed cost is $4,100, and the variable cost is $5,600. Od. The total fixed cost is $1,700, and the variable cost is $8,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of
$7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable
cost for January?
a. The total fixed cost is $8,000, and the variable cost is $1,700.
b. The total fixed cost is $5,600, and the variable cost is $4,100.
O c. The total fixed cost is $4,100, and the variable cost is $5,600.
d. The total fixed cost is $1,700, and the variable cost is $8,000.
Expert Solution
Step 1
Total variable cost is calculated by multiplying the variable cost per unit with the number of units produced or meals served.
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