Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behaviour patterns. She has the following information available about her operating costs and the number of snow cones served.

Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.
-What would Suzy's Cool Treatz operating income be if Suzi prepared a contribution margin income statement for the month?
A) $8,100
B) $7,300
C) $13,500
D) $5,400

Question

Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behaviour patterns. She has the following information available about her operating costs and the number of snow cones served.
  
Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.
-What would Suzy's Cool Treatz operating income be if Suzi prepared a contribution margin income statement for the month?
A) $8,100 
B) $7,300 
C) $13,500 
D) $5,400

Quizplus · Accepted Answer

The Answer of Suzy's Cool Treatz is a snow cone stand near the local park. To plan for the future, the owner wants to determine her cost behaviour patterns. She has the following information available about her operating costs and the number of snow cones served.
  
Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.
-What would Suzy's Cool Treatz operating income be if Suzi prepared a contribution margin income statement for the month?
A) $8,100 
B) $7,300 
C) $13,500 
D) $5,400

Suzy's Cool Treatz Is a Snow Cone Stand near the Local