Required information PR 6-38 (Algo) High-Low Method; Fitness Centers (LO 6-1, 6-2, 6-5) [The following information applies to the questions displayed below.] Nation's Capital Fitness, Incorporated, operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of an equation, in the form of Y= a + bx, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Month January February March April May June July August September October November December Total Average Hours of Maintenance Maintenance Service Costs 540 $5,178 490 4,230 250 2,800 1330 4,330 750 460 320 350 3,030 4,140 DI 470 320 320 3,090 410 3,540 460 4,040 380 3,210 350 3,200 340 3,070 4,820 $ 43,858 402 $ 3,655

A fixed cost is a cost that does not vary in the short run with a specified activity. The defining characteristic of a fixed cost is that it depends on the amount of a resource that is acquired rather than the amount that is used. For this reason fixed costs are often called capacity-related costs. Write 300 to 400 words that explain the difference between fixed costs and variable costs. The example may be of a company you’ve worked with or another company that has these types of costs

1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the​ table:   a. What is the total contribution​ margin? b. What is the total variable​ expense? c. How many units were​ sold? d. What is the​ per-unit variable​ expense? e. What is the​ per-unit contribution​ margin? 2. Answer the following questions about breakeven​ analysis:   a. What is the breakeven point in​ units? b. What is the breakeven point in sales​ dollars? 3. Answer the following questions about target profit analysis and safety​ margin:   a. How many units must the company sell in order to earn a profit of $48,000​? b. What is the current margin of safety in​ units? c. What is the margin of safety in sales​ dollars? d. What is the margin of safety in​ percentage?

In the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?

Within a relevant range, fixed costs per unit: Group of answer choices Decrease as the level of activity decreases. Decrease as the level of activity increases. Increase as the level of activity increases. Remain the same as the level of activity increases.