Goode Theaters outsources the cleaning of its movie theaters. The cleaning vendor’s charges are based upon the total hours needed to clean the facilities, and more cleaning time is needed as more people attend the theater. Goode has accumulated the following historical data. Number of Movie Month Cleaning Cost Tickets Sold April $11,000 19,700 May 9,000 17,000 June 15,600 28,000 July 15,000 29,000 Goode anticipates selling 25,000 movie tickets in August. If Goode uses the high-low method of separating costs into their fixed and variable components, the company’s budget for August cleaning costs would be a. $13,000. b. $13,400. c. $13,500. d. $13,800.
Posted on: Sun, 19 Oct 2014 18:40:19 +0000
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