Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns throughout the year. To plan for the future, Mr. Jones wants to determine its cost behavior patterns. He has the following information available about the ice cream stand's operating costs and the number of soft serve cones served.
Month |
Number of ice cream cones |
Total operating costs |
April |
800 |
$950 |
May |
825 |
$975 |
June |
1,125 |
$1,000 |
July |
2,000 |
$1,250 |
August |
1,500 |
$1,875 |
September |
900 |
$1,500 |
Using the high minus low method, the fixed costs for a month are