Supply Costs at Lattea Corporation's Chain of Gyms Are Listed

question 166

Multiple Choice

Supply costs at Lattea Corporation's chain of gyms are listed below: Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:

• A)$2.44 per client-visit; $28,623 per month
• B)$1.33 per client-visit; $12,768 per month
• C)$0.79 per client-visit; $19,321 per month
• D)$0.75 per client-visit; $19,826 per month

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Definitions:

Normally Distributed

Normally distributed describes a statistical distribution that is symmetrical and bell-shaped, characterizing many natural phenomena, where most occurrences take place around the average value, with fewer instances at the extremes.

Negative Correlations

A relationship between two variables in which one variable increases as the other decreases.

Scatter Plot

A graphical representation used to display values for typically two variables for a set of data, showing how much one variable is affected by another.

Widely Dispersed

Spread out over a large area or among a large number of people; not concentrated in one place.