The Education Coordinator decides that the Community College packs may be unduly

Question

The Education Coordinator decides that the Community College packs may be unduly influencing the high-low computation. She decides to re-run the results omitting the Community College volume.

Required

1. Using the monthly utilization information presented below, and omitting the Community College training packs, find the fixed and variable portion of costs through the high-low method. Note that the college only acquires packs in three months of the year: January, May, and September. These dates coincide with the start dates of their semesters and summer school.

2. The reason the Education Coordinator needs to know how much of the cost is fixed is because she is supposed to collect the appropriate variable cost from the Community College for their packs. For her purposes, which computation do you believe is better? Why?

                     Total Number of       Total   Community College Community College
Month          Training Packs         Cost       Number Packs               Cost

January                 1,000              $6,200              200                     $1,240

February                  200                1,820

March                      250                2,350

April                        400                3,440

May                         700                4,900              300                       2,100

June                         300                2,730

July                         150                1,470

August                     100                1,010

September            1,100                7,150              300                       1,950

October                   300                2,850

November               250                2,300

December                100                1,010

Explanation / Answer

Month Total number of training packs Total cost   Community college number packs Community college cost Total number of training packs (Omitting college) Total cost (Omitting college) January 1000 $        6,200 200 $              1,240 800 $         4,960 February 200 $        1,820 200 $         1,820 March 250 $        2,350 250 $         2,350 April 400 $        3,440 400 $         3,440 May 700 $        4,900 300 $              2,100 400 $         2,800 June 300 $        2,730 300 $         2,730 July 150 $        1,470 150 $         1,470 August 100 $        1,010 100 $         1,010 September 1100 $        7,150 300 $              1,950 800 $         5,200 October 300 $        2,850 300 $         2,850 November 250 $        2,300 250 $         2,300 December 100 $        1,010 100 $         1,010

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.