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Problem 1: In a month when a tour company hosts 100 guests, its operating costs are $15,000. In a month when it has 200 guests, its operating costs are $20,000. Use the high-low method to determine the company's variable cost per guest.
A. Monthly fixed cost is $5,000.
B. The variable costs are $50 per guest.
C. The variable costs are $0.50 per guest.
D. Monthly fixed cost is $10,000.
E. The variable costs are $5 per guest.
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