Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,651 $28,481 April 11,447 $28,366 May 11,979 $28,664 June 12,400 $28,900 July 11,711 $28,514 August 11,197 $28,226 September 11,991 $28,671 October 11,682 $28,498 November 11,830 $28,581 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first. Then compute the fixed component. Those estimates are: a. $2.25 per client visit; $28,515 per month. b. $1.14 per client visit; $14,898 per month. c. $0.60 per client visit; $21,451 per month. d. $0.56 per client visit; $21,956 per month.
Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,651 $28,481 April 11,447 $28,366 May 11,979 $28,664 June 12,400 $28,900 July 11,711 $28,514 August 11,197 $28,226 September 11,991 $28,671 October 11,682 $28,498 November 11,830 $28,581 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first. Then compute the fixed component. Those estimates are: a. $2.25 per client visit; $28,515 per month. b. $1.14 per client visit; $14,898 per month. c. $0.60 per client visit; $21,451 per month. d. $0.56 per client visit; $21,956 per month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Supply costs at Coulthard Corporation's chain of gyms are listed below:
Client-Visits Supply Cost
March
11,651
$28,481
April
11,447
$28,366
May
11,979
$28,664
June
12,400
$28,900
July
11,711
$28,514
August
11,197
$28,226
September 11,991
$28,671
October 11,682
$28,498
November 11,830
$28,581
Management believes that supply cost is a mixed cost that depends on client visits. Use the
high-low method to estimate the variable and fixed components of this cost. Compute the
variable component first. Then compute the fixed component. Those estimates are:
a. $2.25 per client visit; $28,515 per month.
b. $1.14 per client visit; $14,898 per month.
c. $0.60 per client visit; $21,451 per month.
d. $0.56 per client visit; $21,956 per month.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education