Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales:

Monthly sales in units

5,000

8,000

10,000

Cost of food sold

$10,000

$16,000

$20,000

Wages and fringe benefits

4,200

4,320

4,400

Fees paid delivery help

1,200

1,920

2,400

Rent on building

1,300

1,300

1,300

Depreciation on equipment

500

500

500

Utilities

800

920

1,000

Supplies (soap, floor wax, etc.)

200

260

300

Administrative costs

1,600

1,600

1,600

Total

$19,800

$26,820

$31,500

(a) Use the high-low method to develop a schedule identifying the amount of each cost that is fixed per month or variable per unit. Total the amounts under each category to develop an equation for total monthly costs.

Round variable cost answers to two decimal places.

	Fixed Costs	Variable Costs
Cost of food sold	Answer	Answer
Wages and fringe benefits	Answer	Answer
Fees paid delivery help	Answer	Answer
Rent on building	Answer	Answer
Depreciation on equipment	Answer	Answer
Utilities	Answer	Answer
Supplies (soap, floor wax, etc.)	Answer	Answer
Administrative costs	Answer	Answer
Total costs equation	Answer	Answer

(b) Predict total costs for a monthly sales volume of 9,100 units.