Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Transcribed Image Text:Supply costs at Lattea Corporation's chain of gyms are listed below:
Client-Visits Supply Cost
March
11,668
$28,582
April
11,464
$28,416
May
11,996
$28,840
June
14,100
$28,934
July
11,728
$28,643
August
11,214
$28,242
September 12,008
$28,841
October 11,699
$28,599
November 11,847
$28,724
Management believes that supply cost is a mixed cost that depends on client visits. Use the
high-low method to estimate the variable and fixed components of this cost, Compute the
variable component first, rounding off to the nearest whole cent. Then compute the fixed
component, rounding off to the nearest whole dollar. Those estimates would be closest to:
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