High Low Method Exercise Name: Date: Unparalleled Training Seminars Inc., provides high quality professional training aimed at increasing the efficiency of executive management teams. Each training session is six hours and includes breakfast, lunch and coffee throughout. Attendees receive a binder with single-sided color pages of each section covered in the training, a notepad, pen and certificate of achievement at the end of the training, Management of Unparalleled is interested in the cost structure, estimating 3rd & 4th fourth quarter costs and revenues as well as ideas to increase profits. You have been provided the following information for the first two quarters and asked these questions. Q1. What are the: a) Variable cost per training $ b) Total fixed monthly costs $ c) Graph the cost structure $ 25,000 Number of Trainings Offered 20,000 Cost to Provide Training 16,050 15,000 8 $ January Februa 10 17,850 10,000 March 13 20,250 16 22,650 April May 5,000 14 20,850 19,050 June 11 $ 5 10 15 20 Q2. Complete: a) The table of estimated costs for July - December b) Plot estimated cost vs. estimated revenue $ 30,000 25,000 Estimated Cost to Provide 20,000 Estimated Trainings 10 15 $ 15,000 July August September 19 Estimated Revenue 16,600 24,900 31,540 28,220 19,920 14,940 10,000 17 5,000 October November December 12 9 $ July Aug Sept Oct Nov Dec Revenue ---- Expense X