s M5-10 (Static) Estimating Cost Behavior Using High-Low Method [LO 5-3]Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half ofthe year:MonthJanuaryFebruaryMarchAprilMayJuneNumber ofAppointments250Variable cost per unitTotal fixed cost300500225150175Total Cost$5,0006,0006,1855,3005,4505,230Required: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 4 decimal places and "Fixed cost" answer to the nearest dollar amount.

Variable cost is a cost which varies with units of production while a fixed cost is a cost which…

Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half o the year: Month January February March April May June Number of Appointments 250 300 500 225 Variable cost per unit Total fixed cost 150 175 Total Cost $ 5,000 6,000 6,185 5,300 5,450 5,230 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 4 decimal places and "Fixed cost" answer to the nearest dollar amount.