Frank Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below: Assume that the relevant range includes all of the activity levels mentioned in this problem. Using the high-low method of analysis, the variable cost per meal served in the cafeteria would be estimated to be:
A)$1.50
B)$2.00
C)$2.80
D)$1.00

Question

Frank Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below:  Assume that the relevant range includes all of the activity levels mentioned in this problem. Using the high-low method of analysis, the variable cost per meal served in the cafeteria would be estimated to be:
A)$1.50 
B)$2.00 
C)$2.80 
D)$1.00

Quizplus · Accepted Answer

The Answer of Frank Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below:  Assume that the relevant range includes all of the activity levels mentioned in this problem. Using the high-low method of analysis, the variable cost per meal served in the cafeteria would be estimated to be:
A)$1.50 
B)$2.00 
C)$2.80 
D)$1.00

Frank Company Operates a Cafeteria for Its Employees