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 275 250 475 225 200 150 Total Cost $ 6,550 6,400 7,000 5,700 5,300 5,700 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. Variable Cost per Unit Fixed Cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Rahul 

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
275
250
475
225
200
150
Variable Cost per Unit
Fixed Cost
Total Cost
$ 6,550
6,400
7,000
5,700
5,300
5,700
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.
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 275 250 475 225 200 150 Variable Cost per Unit Fixed Cost Total Cost $ 6,550 6,400 7,000 5,700 5,300 5,700 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.
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