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Problem

Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years:

Number of Visitors
per Year:
(thousands)

Maintenance Costs
($000)

1,825

2,925

2,007

3,225

2,375

3,750

Required:

(a) Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92770271

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