Reference no: EM131811477

Question - The cost of cleaning supplies used in a student-housing unit is believed to have a mixed cost behavior pattern that is a function of the number of student days the unit is occupied. For this purpose, a student day is defined as the occupancy by one student for one day. Thus, if during a given two-week period, 15 students occupied the unit for 10 days, and 16 students occupied the unit for 4 days, the total student days would be 214 (10 days * 15 students plus 4 days * 16 students). During one two week period, there were 200 student days and the total cleaning supplies cost was $48. During another two week period, there were 260 student days and the total cleaning supplies cost was $60.

a. Using the high low method, calculate the variable cost per student day and the fixed cost per two-week period for cleaning supplies.

b. Calculate the estimated cleaning supplies cost for a six week period during which occupancy in the housing unit would average 16 students per day.