Solved

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

Question 173

Multiple Choice

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 canes  Total operating 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 canes } & \text { Total operating costs } \\\hline \text { January } & 3,500 & \$ 5,000 \\\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 for $3.00 each
-What would her operating income be if she prepared a traditional income statement for a month?


A) $13,500
B) $5,400
C) $8,100
D) $7,300

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions