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Afina-wow [57]
3 years ago
15

Sherri's 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 Number of Appointments Total Cost January 375 5,050 February 350 5,500 March 200 5,200 April 500 7,000 May 400 5,650 June 300 5,200 Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)
Business
1 answer:
Sidana [21]3 years ago
3 0

Answer:

Variable cost per unit= $6.5 per unit

Fixed costs= $3,750

Explanation:

Giving the following information:

Month - Number of Appointments - Total Cost

January: 375 $5,050

February: 350 $5,500

March: 200 $5,200

April: 500 $7,000

May: 400 $5,650

June: 300 $5,200

To calculate the variable and fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (7,000 - 5,050) / (500 - 200)= $6.5 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 7,000 - (6.5*500)= $3,750

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,050 - (6.5*200)= $3,750

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5 0
3 years ago
If consumption increases, a) the SRAS curve will shift rightward, which will push the price level up. b) the SRAS curve will shi
SSSSS [86.1K]

Answer: Option (d) is correct

If consumption increases, the AD curve will shift rightward, which will increase the price level.

Explanation:

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3 0
3 years ago
if Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain Coffee from Jamaica Germany has a
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5 0
2 years ago
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Ama
Kryger [21]

Explanation:

The Journal entry is given below:-

1 January 2020             No Entry

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                                              To, Paid-In-Capital                         6,580

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7 0
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Mrac [35]

Answer:

Product cost per unit = $13

Explanation:

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The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads.

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Full cost per unit = Total full absorption cost/Number of units

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Product cost per unit = $13

4 0
2 years ago
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