Tasty Treats is a snow cone stand near the local park.To plan for the future,Tasty Treats wants to determine its cost behavior patterns.It has the following information available about its operating costs and the number of snow cones served.

Using the high-low method,the fixed costs for a month are

Question

Tasty Treats is a snow cone stand near the local park.To plan for the future,Tasty Treats wants to determine its cost behavior patterns.It has the following information available about its operating costs and the number of snow cones served.

Using the high-low method,the fixed costs for a month are

Quizplus · Accepted Answer

C)
Highest cost $6,820 Highest activity 7,600
Lowest cost $5,840 Lowest activity 6,200
Difference $980 1,400
NOW divide the difference in the cost by the difference in the activity equals Variable cost per unit.$980/1,400 = $ .70
Put the numbers into the Cost Equation: $6,820 = $ .70 (7,600)+ f
$1,500 = f

Tasty Treats Is a Snow Cone Stand near the Local