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Suzy's Cool Treatz Is a Snow Cone Stand near the Local

Question 77

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Suzy's Cool Treatz is a snow cone stand near the local park.To plan for the future,the owner wants to determine her cost behavior patterns.She has the following information available about her operating costs and the number of snow cones served.  Month  Number of snow cones  Total qperating costs  January 3,500$5,000 February 3,800$4,800 March 5,000$6,800 April 3,600$5,450 May 4,700$6,200 June 4,250$5,950\begin{array} { | l | c | c | } \hline \text { Month } & \text { Number of snow cones } & \text { Total qperating costs } \\\hline \text { January } & 3,500 & \mathbf { \$5 , 0 0 0 } \\\hline \text { February } & 3,800 & \$ 4,800 \\\hline \text { March } & 5,000 & \$ 6,800 \\\hline \text { April } & 3,600 & \$ 5,450 \\\hline \text { May } & 4,700 & \$ 6,200 \\\hline \text { June } & 4,250 & \$ 5,950 \\\hline\end{array} Suzy uses the high-low method to determine her operating cost equation and sells 4,500 cones in a month for $3.00 each.
-What would her contribution margin be if she prepared a contribution margin income statement for a month?


A) $18,900
B) $13,500
C) $ 8,100
D) $ 5,400

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