Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behaviorpatterns. She has the following information available about her operating costs and the number of snow cones served.MonthNumber of snow Total operatingconesCosts3,500$5,000JanuaryFebruary$4,8003,800March5,000$6,800April3,600$5,4504,700$6,200May$5,9504,250JuneSuzy uses the high-low method to determine her operating cost equation. What are her estimated costs at 4,933 snow cones? Whencalculating the variable cost per unit, round your answer to two decimal places before completing your calculations. Do not usedollar signs, commas or decimals in your answer. Input your answer to the nearest whole number

High-low method is a cost computation technique which separates variable and fixed cost from total…

Answered: Suzy's Cool Treatz is a snow cone stand…

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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Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers the number of cruises and the number of passengers that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $6,600 $2,200 $5,900 $3,100 Required: Complete the company's planning budget for July. For example, vessel operating costs should be S6,600 per month plus $471.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,150 passengers. Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses: Vessel…
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