Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Jones
Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns throughout the year. To plan for the future, Mr. Jones wants to determine its cost behavior patterns. He
has the following information available about the ice cream stand's operating costs and the number of soft serve cones served.
Month
April
May
June
July
August
September
Number of ice cream cones
2000
2,100
OA $800
OB $1000
OC. $4800
OD. $2000
2,125
4000
2,500
2,900
Total operating costs
$1800
$1,975
$2,000
$2800
$2,175
$2,500
Using the high-low method, the fixed costs for a month are (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low"
month, as it will result in an approximation of the cost.)
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Transcribed Image Text:Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns throughout the year. To plan for the future, Mr. Jones wants to determine its cost behavior patterns. He has the following information available about the ice cream stand's operating costs and the number of soft serve cones served. Month April May June July August September Number of ice cream cones 2000 2,100 OA $800 OB $1000 OC. $4800 OD. $2000 2,125 4000 2,500 2,900 Total operating costs $1800 $1,975 $2,000 $2800 $2,175 $2,500 Using the high-low method, the fixed costs for a month are (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.)
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