Customer service costs at BA Inc. are as follows: ...
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Accounting
Customer service costs at BA Inc. are as follows:
| Number of Customers Served | Customer Service Cost | |||||||
| March | 11,665 | $ | 28,352 | |||||
| April | 11,461 | $ | 28,296 | |||||
| May | 11,993 | $ | 28,440 | |||||
| June | 13,800 | $ | 28,928 | |||||
| July | 11,725 | $ | 28,368 | |||||
| August | 11,211 | $ | 28,229 | |||||
| September | 12,005 | $ | 28,443 | |||||
| October | 11,696 | $ | 28,360 | |||||
| November | 11,844 | $ | 28,400 | |||||
Customer service cost is a mixed cost whose varible component is driven by number of customers served. Suppose the company uses the high-low method to estimate the variable and fixed components of this cost. The company expects to serve 16,200 clients next month. The company's estimated total customer service cost for next month is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$29,576
$30,626
$31,826
$31,221
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