business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times. One of the major events Chavez's customers request is a cocktail party. She offers a standard cocktail party and has estimated the cost per guest as follows: $ 18.00 5.00 Food and beverages Labor (0.5 hour $10.00 hr.) Overhead (0.5 hour $18.66/hr.) Total cost per guest 9.33 $32.33 The standard cocktail party lasts three hours and Chavez hires one worker for every six guests, so that works out to one half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually work When bidding on cocktail parties, Chavez adds a 11% markup to yleld a price of about $32 per guest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate or overhead cost. The $18.66 overhead cost per labor hour was determined by dividing total overhead expenses for the last 12 months by total lobor-hours for the same period. Monthly data concerning overhead costs and labor hours follow: overhead Month Labor. Hours Expenses January 3,00 53,000 February 2.100 57,000 March 2.300 58.000 April 3.500 62,000 May 3,800 65,000 4,500 49,000 uly 5.600 72.000 August 6,00 75.000 September 6,300 73,000 October 3.000 66,00 November 3.400 62,000 December 20.00 Total 5782.000 Chavez has received a request to bid on a 160 guest fundraising cocktail party to be given next month by an important local charity (The party would last the usual three hours) She would like to win this contract because the guest list for this charity event includes many prominent individuals that she would like to secure as future clients, Maria is confident that these potential customers would be favorably impressed by her company's services at the charity event 2a. Use the least-squares regression method to estimate the fixed and variable components of overhead expenses. 2b. Express these estimates in the form Y-abx Complete this question by entering your answers in the tabs below. Required 2A Required 28 Use the least squares regression method to estimate the fixed and variable components of overhead expenses. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Fixed cost per month Variable cost per hour Required 28 > 2a. Use the least squares regression method to estimate the fixed and variable components of overhead expenses. 2b. Express these estimates in the form Y = a + bx Complete this question by entering your answers in the tabs below. Required 2A Required 28 Express these estimates in the form Y-3 + bx (Round the variable cost to 2 decimal places and fixed Cost to the nearest whole dollar amount.)
