Jones ice cream stand is operated by mr jones and


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 800 $950
May 825 $975
June 1,125 $1,000
July 2,000 $1,250
August 1,500 $1,875
September 900 $1,500

Using the high minus low method, the fixed costs for a month are

 

 

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Accounting Basics: Jones ice cream stand is operated by mr jones and
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