Problem
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years:
|
Number of Visitors
per Year:
(thousands)
|
Maintenance Costs
($000)
|
|
1,825
|
2,925
|
|
2,007
|
3,225
|
|
2,375
|
3,750
|
Required:
(a) Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor.