Fast Food College has recently opened a restaurant as part of its hospitality major. The manager gathered the following data from the first five weeks of operations. Knowing you are currently taking a managerial accounting course he has asked that you analyze the data.
Week | Number of customers per week | Weekly total restaurant costs incurred |
1 | 1,500 | $33,600 |
2 | 1,600 | 35,850 |
3 | 1,750 | 38,455 |
4 | 1,633 | 36,204 |
5 | 1,850 | 40,600 |
6 | 1,790 | 39,468 |
Using the high-low method, what will the total monthly manufacturing costs be if the College's restaurant produces 1,650 units?
◦ $36,210
◦ $36,960
◦ $33,000
◦ $36,600