Carla Vista Co. recently opened for business. The owner wants a cost function estimate to help with future planning. The manager feels that last months results fairly represent costs over the coming six months. Last month 700 pizzas were sold. From the following information, use account analysis to estimate the firms cost function for pizzas sold.

Wages for part-time help		$2,737
Pizza toppings		210
Pizza dough		280
Store rent		390
Depreciation on furniture and ovens		75
Napkins, paper plates, cups, and straws		84
Liability insurance		99
Advertising		60
Cleaning supplies		15
Managers salary		1,460
Utilities (electricity and telephone)		105
Soft drink purchases		434

Develop a cost function using the data from the accounting records. (Round variable cost per unit to 2 decimal places, e.g. 15.25.)

Cost function

=

$

+

$

Number of pizzas

Use the cost function to estimate the total costs if 800 pizzas are expected to be sold next month.

Total cost for 800 pizzas

$