McCartney Services Has a Customer Website to Take Orders, Answer

question 144

Essay

McCartney Services has a customer website to take orders, answer customer questions, and address customer complaints. The costs associated with this customer website over the past six months are listed below:
Management at McCartney Services believes that the customer website costs are a mixed cost and would like to use the high-low method to estimate their future costs using the number of website hits in any given month as the cost driver.
Required:
1. Using the high-low method, estimate the variable cost per website hit and the monthly fixed costs associated with the customer website.
2. Write the cost equation for estimating the customer website expenses for McCartney Services using the results from Requirement 1.
3. If McCartney Services expects 9,500 website hits for July, what are their anticipated customer website costs for July?

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Definitions:

Siderails

Safety bars attached to the sides of hospital beds, used to prevent patients from falling and to assist in repositioning themselves in bed.

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, resulting in blurred vision and potentially blindness if left untreated.

Strabismus

A condition where the eyes do not properly align with each other when looking at an object, leading to double vision or the development of a squint.

Glaucoma

A group of eye conditions that damage the optic nerve, often due to abnormally high pressure in the eye, leading to vision loss if untreated.