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#### Speedy Pete’s is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops

###### Accounting

Speedy Pete’s is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected

Month Delivery Cost   Number of Deliveries
May 63,450 1,800
June 67,120 2,010
July 66,990    2,175
August 68,020 2,200
September 73,400 2,550
October 72,850 2,630

November 75,450 2,800

December 73,300 2,725

(1) Which month represents the high point?

(2) Which month represents the low point?

(3) Using the high-low method, compute the variable rate.

(4) Using the high-low method, compute the fixed cost per month.

(5) Using your answers thus far, write the cost formula for delivery cost.

(6) Assume that 2,480 deliveries are budgeted for next month--using the high-low method formula you developed, forecast the amount of delivery cost for next month.

## 2.84 USD

### Option 2

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