High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa

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High-Low Method Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows: Month January February March Tanning Appointments 800 1,900 3,600 2,400 1,400 2,200 2,160 3,000 January March May June August Total Cost KW $1,750 April May June July August Required: 1. Which month represents the high point? The low point? High point Low point In your calcu $2,110 $2,730 $2,500 $1,800 $2,275 $2,100 $2,620 t costs to the nearest cent. Previous Next >

High point Low point In your calculations, round per unit costs to the nearest cent. 2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. Round the variable rate per tanning appointment to the nearest cent and use it in your further calculations. Round the fixed cost per month to the nearest dollar and use it in your further calculations. per tanning appointment Variable rate for tanning Fixed cost per month 3. Using the variable rate and fixed cost, what is the cost formula for tanning services? Total tanning service cost Total tanning service cost Total tanning service cost Total tanning service cost Total fixed cost for September Total predicted variable cost for September 5. Which of the following statements is correct when luisa uses the high-low method to estimate the costs? $2420 ($0.37x Number of appointments) $2420-($0.37 x Number of appointments) $1470 (50.35 x Number of appointments) $1470-($0.35 x Number of appointments) er for 2,600 appointments using the formula found in Requirement 3. Of that total cost, how much variable cost for September? If required, round the final answers to the nearest dollar. Linue

Hable rate for tanning. Compute the fixed cost per month. Round the variable rate per tanning appointment to the nearest cent and use it in your further calculations. Round the fixed cost per month to the nearest dollar and use it in your further calculations. Variable rate for tanning per tanning appointment Fixed cost per month 3. Using the variable rate and fixed cost, what is the cost formula for tanning services? 4. Calculate the total predicted cost of tanning services for September for 2,600 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? If required, round the final answers to the nearest dollar. Total predicted cost for September Total fixed cost for September Total predicted variable cost for September 5. Which of the following statements is correct when luisa uses the high-low method to estimate the costs? High-low method is based on only two data points and ignores all of the other data. Luisa might be wise to calculate the cost formula 6 to 12 months later after a longer time period has elapsed since starting the tanning business. It appears there is significant excess tanning bed capacity in slow months or machines are being run to their utmost capacity in busy months This might All of the above All work saved. Previous Next Submit Test for Greding