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 225 350 275 Variable Cost per Unit Fixed Cost 200 400 300 Total Cost $ 5,350 5,800 5,450 5,750 6,500 5,950 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 225 350 275 Variable Cost per Unit Fixed Cost 200 400 300 Total Cost $ 5,350 5,800 5,450 5,750 6,500 5,950 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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![**Tan-O-Rama Cost Analysis**
Tan-O-Rama is a local tanning salon. The following table provides data on the number of appointments and total costs for the first half of the year:
| Month | Number of Appointments | Total Cost |
|-----------|------------------------|------------|
| January | 225 | $5,350 |
| February | 350 | $5,800 |
| March | 275 | $5,450 |
| April | 200 | $5,750 |
| May | 400 | $6,500 |
| June | 300 | $5,950 |
**Task:**
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.
**Instructions:**
- Round your "Variable cost per unit" answer to 2 decimal places.
- Round your "Fixed cost" answer to the nearest dollar amount.
**Input Fields:**
- Variable Cost per Unit: [Input Box]
- Fixed Cost: [Input Box]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b2f6d1e-6332-46ff-aac3-69fac171d186%2F7427aede-c6e8-46f3-92cf-b84a4b0bae52%2F3fq66g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Tan-O-Rama Cost Analysis**
Tan-O-Rama is a local tanning salon. The following table provides data on the number of appointments and total costs for the first half of the year:
| Month | Number of Appointments | Total Cost |
|-----------|------------------------|------------|
| January | 225 | $5,350 |
| February | 350 | $5,800 |
| March | 275 | $5,450 |
| April | 200 | $5,750 |
| May | 400 | $6,500 |
| June | 300 | $5,950 |
**Task:**
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.
**Instructions:**
- Round your "Variable cost per unit" answer to 2 decimal places.
- Round your "Fixed cost" answer to the nearest dollar amount.
**Input Fields:**
- Variable Cost per Unit: [Input Box]
- Fixed Cost: [Input Box]
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