Question

Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns throughout the year. To plan for the​ future, Mr. Jones wants to determine its cost behavior patterns. He has the following information available about the ice cream​ stand's operating costs and the number of soft serve cones served. Month Number of ice cream cones Total operating costs April 790 ​$950 May 825 ​$975 June ​1,125 ​$1,000 July ​2,000 ​$1,450 August ​1,500 ​$1,175 September 900 ​$1,500 The variable cost per ice cream cone using the high minus −low method is

Answer 1

variable cost: 0.413 dollar per ice cream cone.

Step-by-step explanation:

We subtract the low fron the high:

`\left[\begin{array}{ccc}High&2000&1450\\Low&790&950\\Diference&1210&500\\\end{array}\right]`

The difference tell us that 1,210 ice cream cone generates cost for 500 dollars.

Thus, we divide to get the variable cost:

500 dollars / 1,210 ice cream cones = 0,41322314 = 0.413 variable cost per ice cream cone