a)You were asked to cater a buffet for a day 40 people at $15 per person, your variable costs average 75 percent of sales revenue, and fixed costs are $50 per day. Determine your contribution margin and operating income or loss and whether you will accept or reject the proposal.

b)Using the high-low method, find total fixed cost and the variable cost perguest if you had 14,000 and 10,000 guests, and labor costs were $15,500 and $12,000, respectively.