Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments. 300 375 450 250 325 275 Total Cost $ 6,050 7,000 6,400 5,600 5,800 5,350 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments. 300 375 450 250 325 275 Total Cost $ 6,050 7,000 6,400 5,600 5,800 5,350 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of
the year:
Month
January
February
March
April
May
June
Number of
Appointments
300
375
450
250
325
275
Total Cost
$6,050
7,000
6,400
5,600
5,800
5,350
Required:
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.
Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
Vanable Cost per Unit
Fixed Cost
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