Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply CostMarch12,855 $23,598April12,283 $23,278May13,104 $23,742June12,850 $23,607July12,493 $23,415August12,794 $23,562September12,686 $23,496October12,765 $23,541November13,018 $23,687 Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to:
A. $1.85 per client-visit; $23,547 per month
B. $0.57 per client-visit; $16,273 per month
C. $1.77 per client-visit; $557 per month
D. $0.55 per client-visit; $16,579 per month
Answer: B
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