Question

Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,648 $ 28,560 April 11,581 $ 28,510 May 11,976 $ 28,802 June 12,100 $ 28,894 July 11,708 $ 28,604 August 11,194 $ 28,224 September 11,988 $ 28,811 October 11,679 $ 28,582 November 11,827 $ 28,692 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $2.43 per client-visit; $28,605 per month $1.32 per client-visit; $12,882 per month $0.78 per client-visit; $19,435 per month $0.74 per client-visit; $19,940 per month

Answer 1

$0.74 Per Client -visit , 49,940 Per Month Change incost ^ change inoctivity Vaxiable cost $0.79 Per Cient $28 894 $60 q06 $28,224 12,100 FPXed cost Total Cost Vaviable Cost 12100×$0子y 28894 $19,940. P.m *