Assume that Marciano's Italian restaurant has the following information available regarding costs at representative levels of monthly sales (meals served):

	Monthly sales in units
	6,000	8,000	12,000
Cost of food sold	7,500	10,500	6,000
Wages and fringe benefits	5,900	5,940	6,000
Fees paid delivery help	6,000	8,400	12,000
Rent on building	4,500	4,500	4,500
Depreciation on equipment	650	650	650
Utilities	600	640	700
Supplies (soap, floor wax, etc.)	400	480	600
Administrative costs	1,500	1,500	1,500
Total	27,050	32,610	31,950

1. Identify each cost as being variable, fixed, or mixed
2. Use the high-low method to develop a schedule identifying the amount of each cost that is mixed or variable per unit. Total the amounts under each category to develop an equation for total monthly costs.
3. Predict total costs for a monthly sales volume of 8,500 units.