Question - To play the pristine course and have access to its exclusive clubhouse, Running Rivers Golf Course requires a monthly membership. The company has begun preparation for the following year's budget and needs to determine how the club's costs behave in order to make accurate projections. The financial data for the first half of the current year is provided below.
|
Month
|
Number of Club Memberships
|
Total
Operating Costs
|
Average Operating Costs per Club Member
|
|
January
|
100
|
$18,560
|
$185.60
|
|
February
|
120
|
$18,850
|
$157.08
|
|
March
|
150
|
$20,300
|
$135.33
|
|
April
|
225
|
$20,450
|
$90.89
|
|
May
|
240
|
$20,800
|
$86.67
|
|
June
|
220
|
$20,420
|
$92.82
|
Use the high-low method to determine the Running Rivers' monthly operating cost equation.