FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**Tan-O-Rama Cost Analysis**

Tan-O-Rama is a local tanning salon. The following table provides data on the number of appointments and total costs for the first half of the year:

| Month     | Number of Appointments | Total Cost |
|-----------|------------------------|------------|
| January   | 225                    | $5,350     |
| February  | 350                    | $5,800     |
| March     | 275                    | $5,450     |
| April     | 200                    | $5,750     |
| May       | 400                    | $6,500     |
| June      | 300                    | $5,950     |

**Task:**

Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.

**Instructions:**

- Round your "Variable cost per unit" answer to 2 decimal places.
- Round your "Fixed cost" answer to the nearest dollar amount.

**Input Fields:**

- Variable Cost per Unit: [Input Box]
- Fixed Cost: [Input Box]
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Transcribed Image Text:**Tan-O-Rama Cost Analysis** Tan-O-Rama is a local tanning salon. The following table provides data on the number of appointments and total costs for the first half of the year: | Month | Number of Appointments | Total Cost | |-----------|------------------------|------------| | January | 225 | $5,350 | | February | 350 | $5,800 | | March | 275 | $5,450 | | April | 200 | $5,750 | | May | 400 | $6,500 | | June | 300 | $5,950 | **Task:** Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. **Instructions:** - Round your "Variable cost per unit" answer to 2 decimal places. - Round your "Fixed cost" answer to the nearest dollar amount. **Input Fields:** - Variable Cost per Unit: [Input Box] - Fixed Cost: [Input Box]
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