Carl's Golden Hot Pancake Restaurant features sourdough pancakes made from a Requirements strain of sourdough dating back to the Yukon gold rush. To plan for the future, Carl 1. Use the high-low method to determine Carl's operating cost equation. needs to figure out his cost behaviour patterns. He has the following information 2. Use your answer from Requirement 1 to predict total monthly operating costs if about his operating costs and the number of pancakes served: Carl serves 4,000 pancakes in 1 month. (Click the icon to view the data.) 3. Can you predict total monthly operating costs if Carl serves 11,000 pancakes a month? Explain. Requirement 1. Use the high-low method to determine Carl's operating cost equation. Let's begin by determining the formula that is used to calculate the variable cost (slope). = Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. = Fixed cost Use the high-low method to determine the variable and fixed costs components of Carl's operating cost equation. (Round the variable cost to the nearest cent.) y=$(x+$0 Requirement 2. Use your answer from Requirement 1 to predict total monthly operating costs if Carl serves 4,000 pancakes in 1 month. The total monthly operating costs if Carl serves 4,000 pancakes is $ 1. Requirement 3. Can you predict total monthly operating costs if Carl serves 11,000 pancakes a month? Explain. V. The cost equation Month July .............. August September October November December. ...... Number of Pancakes 3,600 3,900 3,200 3,300 3,850 3,620 Total Operating Costs 2,340 2,390 2,320 2,270 2,560 2,530