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 375 350 200 500 400 300 Variable Cost per Unit Fixed Cost Total Cost $ 5,050 5,500 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. S 5,200 7,000 5,650 5,200 6.50
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 375 350 200 500 400 300 Variable Cost per Unit Fixed Cost Total Cost $ 5,050 5,500 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. S 5,200 7,000 5,650 5,200 6.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
375
350
200
500
400
300
Variable Cost per Unit
Fixed Cost
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.
Total Cost
$ 5,050
5,500
5,200
7,000
5,650
5,200
$
6.50
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