Supply costs at Lattea Corporation's chain of gyms are listed below: Management believes that supply cost is a mixed cost that depends on client-visits.Using the high-low method to estimate the variable and fixed components of this cost,those estimates would be closest to:
A)$2.44 per client-visit;$28,623 per month
B)$1.33 per client-visit;$12,768 per month
C)$0.79 per client-visit;$19,321 per month
D)$0.75 per client-visit;$19,826 per month

Question

Supply costs at Lattea Corporation's chain of gyms are listed below:  Management believes that supply cost is a mixed cost that depends on client-visits.Using the high-low method to estimate the variable and fixed components of this cost,those estimates would be closest to:
A)$2.44 per client-visit;$28,623 per month 
B)$1.33 per client-visit;$12,768 per month 
C)$0.79 per client-visit;$19,321 per month 
D)$0.75 per client-visit;$19,826 per month

Quizplus · Accepted Answer

The Answer of Supply costs at Lattea Corporation's chain of gyms are listed below:  Management believes that supply cost is a mixed cost that depends on client-visits.Using the high-low method to estimate the variable and fixed components of this cost,those estimates would be closest to:
A)$2.44 per client-visit;$28,623 per month 
B)$1.33 per client-visit;$12,768 per month 
C)$0.79 per client-visit;$19,321 per month 
D)$0.75 per client-visit;$19,826 per month

Supply Costs at Lattea Corporation's Chain of Gyms Are Listed