Sunny's Frozen Treats is a snow cone stand near the local park. To plan for the future, Sunny wants to determine his cost behaviour patterns. He has the following information available about his operating costs and the number of snow cones served.

-Using the high-low method, Sunny's fixed costs for a month are
A) $1,000.
B) $10,400.
C) $1,200.
D) $4,800.

Question

Sunny's Frozen Treats is a snow cone stand near the local park. To plan for the future, Sunny wants to determine his cost behaviour patterns. He has the following information available about his operating costs and the number of snow cones served.
 
-Using the high-low method, Sunny's fixed costs for a month are
A) $1,000. 
B) $10,400. 
C) $1,200. 
D) $4,800.

Quizplus · Accepted Answer

Fixed costs are the same regardless of the level of activity. In this case, the fixed costs are $1,000 per month.

Sunny's Frozen Treats Is a Snow Cone Stand near the Local