Explore BrainMass

Explore BrainMass

    Determining Variable Costs Using the High-Low Method

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:

    January February March April May June July
    Number of rooms cleaned 250 160 200 150 270 170 260
    Cleaning cost $6,450 $4,060 $5,100 $4,100 $6,760 $4,200 $6,530

    How much are estimated monthly variable costs using the high-low method?

    © BrainMass Inc. brainmass.com October 2, 2020, 5:47 am ad1c9bdddf

    Solution Preview

    Rooms Costs
    High ...

    Solution Summary

    This solution illustrates how to compute variable costs per unit per month using the high-low method.