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Calculate the variable cost per unit

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Question - Sandy, the owner of Sunshine Car Wash has found that her income changes depending on the number of cars she washes per month. Sandy wants to predict what her costs are going to be in the future, and has asked you to assist her with some calculations. She has given you the following information for the previous three months:

 

September

October

November

Number of cars washed

1500

1900

2000

Income for the month

R61000

R63500

R76000

Required -

1. Use the high-low method to calculate the variable cost per unit.

2. Use the high-low method to calculate the fixed cost per month.

3. Use the answers from questions to predict the total cost for December if Sandy washes 2200 cars.

Reference no: EM132569564

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