Asokans 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 Asokans 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