Asokan's Golden Brown Pancake Restaurant features sourdough pancakes made from a strain of sourdough dating back to
Question:
Asokan's Golden Brown Pancake Restaurant features sourdough pancakes made from a strain of sourdough dating back to the Yukon gold rush. To plan for the future, Asokan needs to figure out his cost behaviour patterns. He has the following information about his operating costs and the number of pancakes served:
Month Number of Pancakes Total Operating Costs
July .................................... 3,600 $ 2,340
August ............................... 3,900 $2,390
September ........................ 3,200 $2,320
October ............................. 3,300 $2,270
November ......................... 3,850 $2,560
December ......................... 3,620 $2,530
Answer the following questions: (SHOW YOUR WORK)
Use the high-low method to determine Asokan's operating cost equation.
Use your answer from Requirement 1 to predict total monthly operating costs if Asokan serves 5,000 pancakes in one month.
Calculate the total monthly operating costs if Asokan serves 10,000 pancakes a month