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

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

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 dont 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