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    Variable cost using the High- Low Method

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    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 $7,000 $4,200 $6,530

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

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    https://brainmass.com/economics/finance/variable-cost-using-high-low-method-576181

    Solution Preview

    The answer is in the attached excel file:

    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 $7,000 $4,200 $6,530

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

    Month Number of rooms cleaned Cleaning cost
    January 250 $6,450 ...

    Solution Summary

    Calculates fixed and variable cost using the high-low method.

    $2.19

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