4Supply costs at Woodward Corporation's chain of gyms are listed below:MarchAprilMayJuneJulyAugustSeptemberOctoberNovemberClient-Visits12,85512,28313,10412,85012,49312,79412,68612,76513,018SupplyCost$ 23,598$ 23,278$ 23,742$ 23,607$ 23,415$ 23,562$ 23,496$ 23,541$ 23,687Management believes that supply cost is a mixed cost that depends onclient-visits. Use the high-low method to estimate the variable and fixedcomponents of this cost. Compute the variable component first, rounding 4JulyAugustSeptemberOctoberNovember12,49312,79412,68612,76513,018$ 23,415O $1.85 per client-visit; $23,547 per monthO $1.77 per client-visit; $557 per monthO $0.55 per client-visit; $16,579 per monthO $0.57 per client-visit; $16,273 per month$ 23,562$ 23,496$ 23,541$ 23,687Management believes that supply cost is a mixed cost that depends onclient-visits. Use the high-low method to estimate the variable and fixcomponents of this cost. Compute the variable component first, roundingoff to the nearest whole cent. Then compute the fixed component,rounding off to the nearest whole dollar. Those estimates are closest to:(Round your intermediate calculations to 2 decimal places.)

Answered: Supply costs at Woodward Corporation's…

Supply costs at Woodward Corporation's chain of gyms are listed E March April Client- Visits 12,855 12 283 Supply Cost $ 23,598 $23.278

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4
Supply costs at Woodward Corporation's chain of gyms are listed below:
March
April
May
June
July
August
September
October
November
Client-
Visits
12,855
12,283
13,104
12,850
12,493
12,794
12,686
12,765
13,018
Supply
Cost
$ 23,598
$ 23,278
$ 23,742
$ 23,607
$ 23,415
$ 23,562
$ 23,496
$ 23,541
$ 23,687
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, rounding

4
July
August
September
October
November
12,493
12,794
12,686
12,765
13,018
$ 23,415
O $1.85 per client-visit; $23,547 per month
O $1.77 per client-visit; $557 per month
O $0.55 per client-visit; $16,579 per month
O $0.57 per client-visit; $16,273 per month
$ 23,562
$ 23,496
$ 23,541
$ 23,687
Management believes that supply cost is a mixed cost that depends on
client-visits. Use the high-low method to estimate the variable and fix
components of this cost. Compute the variable component first, rounding
off to the nearest whole cent. Then compute the fixed component,
rounding off to the nearest whole dollar. Those estimates are closest to:
(Round your intermediate calculations to 2 decimal places.)

Expert Solution

Step 1

Solution:

Highest Point
Units = 13,104

Cost = $23,742

Lowest point

Units = 12,283

cost = $23,278

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