7:11- Expert Q&A 56 49% Assume you work in the accounting department of Caesars Entertainment and your supervisor, Logan Lacy, asked you the following: 1. Using the high-low method, calculate the following cost estimates: -Variable food and beverage cost per hotel room/suite -Fixed food and beverage cost per year 2. Perform a regression analysis using Excel. Use number of hotel rooms & suites as the X axis and the food and beverage costs as the Y axis in your regression analysis to determine the following cost estimates: -Variable food and beverage cost per hotel room/suite -Fixed food and beverage cost per year 3. In your opinion, is the number of hotel rooms and suites a good predictor of Caesars' food and beverage costs? Why or why not? 4. Compare the estimates of variable and fixed costs calculated using the high-low method to the estimates calculated using the regression. method. Which method would most likely provide a better cost estimate? Explain. Perform the necessary analysis and formulate your answers to the above questions. Write a memo to Logan Lacy providing your answers/opinion with supporting details and examples. Year ended Food and beverage costs No of hotel rooms & suites 12/31/2018 1,106,000,000 37,560 12/31/2017 693,000,000 39,380 Home III 88 Courses Tools < Folder 7:14 B Expert Q&A 12/31/2016 572,000,000 41,730 12/31/2015 399,000,000 41,180 12/31/2014 694,000,000 39,218 12/31/2013 639,000,000 42,200 12/31/2012 634,000,000 42,710 12/31/2011 665,700,000 42,890 12/31/2010 621,300,000 42,010 12/31/2009 596,000,000 41,830 12/31/2008 639,500,000 39,170 12/31/2007 716,500,000 38,130 12/31/2006 697,600,000 38,060 12/31/2005 482,300,000 43,060 12/31/2004 278,100,000 17,220 12/31/2003 255,200,000 14,780 12/31/2002 240,600,000 14,551 12/31/2001 232,400,000 13,598 12/31/2000 228,000,000 11,562 12/31/1999 218,600,000 11,760 12/31/1998 116,600,000 11,685 12/31/1997 103,600,000 8,197 12/31/1996 95,900,000 6,478 12/31/1995 91,500,000 5,736 12/31/1994 82,800,000 5,367 56 48% 12/31/1993 76,500,000 5,348 Please submit a Word file with your memo and an Excel file with your analysis. When submitting, please attach the Word file first followed by the Excel file. Your memo to Logan Lacy must be prepared in Word in a memo format. Your memo should restate Logan's questions from the case Home III 88 Courses Tools Folder 7:15 Expert Q&A 12/31/2000 228,000,000 11,562 12/31/1999 218,600,000 11,760 12/31/1998 116,600,000 11,685 12/31/1997 103,600,000 8,197 12/31/1996 95,900,000 6,478 12/31/1995 91,500,000 5,736 12/31/1994 82,800,000 5,367 56 47% 12/31/1993 76,500,000 5,348 Please submit a Word file with your memo and an Excel file with your analysis. When submitting, please attach the Word file first followed by the Excel file. Your memo to Logan Lacy must be prepared in Word in a memo format. Your memo should restate Logan's questions from the case requirements, articulate your answers/opinions to each and provide support for your answers/opinions. You should use appropriate grammar and expression of ideas for professional correspondence. Your analysis must be prepared in Excel with your work clearly labeled. Please use Excel capabilities to calculate numbers - don't just type the answers. The numerical data presented in the case is provided in the attached Excel file making it easy for you to copy/paste the numbers into your Excel file to save you time compared to typing the numbers yourself. EDIT: Pictures of the answers are fine as well, sorry about that. Cheg should add those features Home III 88 Courses Tools < Folder