5e sol03-07 - Change in visits Low 2,628 700 Change $3,936...

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Cost Management Hansen and Mowen Ex 3-7 Name: SOLUTION Enter the data in columns C and E below. When you have entered all data points, the scattergraph to the right and below will be correct. Number of Total Month Tanning Visits Cost January 700 $2,628 700 2628 February 1,500 4,000 1500 4000 March 3,100 6,564 3100 6564 April 1,700 4,205 1700 4205 May 2,300 5,350 2300 5350 1.64 June 1,800 4,000 1800 4000 July 1,400 3,775 1400 3775 August 1,200 2,800 1200 2800 September 2,000 4,765 2000 4765 1) Examine this scattergraph. 2) Cost Visits Variable = Change in cost High $6,564 3,100
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Unformatted text preview: Change in visits Low 2,628 700 Change $3,936 2,400 Variable = $3,936 = $1.64 per visit 2,400 Fixed = total cost at high-variable cost Fixed = $6,564 -$5,084 Fixed = $1,480 Cost formula is: Y = $1,480 + $1.64 X Visits 3) Predicted cost is: Y = $1,480 + $1.64 (2,200) Y = 1,480 + 3,608 Y = $5,088 - 500 1,000 1,500 2,000 2,500 3,000 3,500 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 $6,500 $7,000 Scattergraph Number of Tanning Appointments Cost...
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