Problem:
Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:$150 per night. Data for the past 7 months are as follows:
|
January |
February |
March |
April |
May |
June |
July |
| Number of rooms cleaned |
250 |
160 |
200 |
150 |
270 |
170 |
260 |
| Cleaning cost |
$6,450 |
$4,060 |
$5,100 |
$4,100 |
$6,760 |
$4,200 |
$6,530 |
Required:
Question: How much are estimated monthly variable costs using the high-low method?
Note: Please show how you came up with the solution.