A restaurant has the following 12-month record of revenue and wages:

Adjustments to the base information shown: Included in the July wages is a lump sum retroactive wage increase of $2,400, which would not normally be part of the July wage cost. Also, in December, the restaurant catered a special Christmas function that brought in $3,200 in sales revenue, and cost the restaurant an additional $900 in wages. The December wage figure also included $1,200 in Christmas bonuses to the staff.
Use the high–low method to calculate the restaurant’s monthly fixed wage costs.

Transcribed Image Text:

January February March Sales Revenue Wage Costs $24,900 $11,300 24,200 11,100 25,600 11,200 April 24,200 11,400 May 34,000 13,200 June 46,200 18,600 July 53,300 21,600 August 44,000 16,100 September 34,200 15,100 October 30,400 12,800 November 28,200 11,200 December 27,000 13,000