Dana owns her own real estate agency. She has been working…
Dana owns her own real estate agency. She has been working hard to increase her client base. She offers the most comprehensive advertising campaign in the city and it has been paying off by the steady increase in the number of listings over the last several months. However, Dana is concerned that her extensive cost for advertising is eating into her profits. It is difficult to determine how much she spends on advertising for each listing because some of her advertising sources are fixed amounts each month and others are more variable in nature. She would like to analyze the following information to determine how her advertising costs behave based on the number of listings. Month Number of Listings Advertising Cost March 22 $15,280 April 26 $17,640 May 35 $23,145 June 42 $27,205 July 48 $30,565 August 51 $32,485 September 50 $31,835 October 56 $36,020 November 54 $34,920 Using the high-low method, what is Dana’s variable cost per listing for advertising?