Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Cost of food sold Monthly sales in units 5,000 8,000 10,000 $15,000 $24,000 $30,000 Wages and fringe benefits 4,350 4,560 4,700 Fees paid delivery help 1,300 2,080 2,600 Rent on building 1,300 1,300 1,300 Depreciation on equipment Utilities 400 400 400 750 840 900 Supplies (soap, floor wax, etc.) 150 180 200 Administrative costs 1,500 1,500 1,500 Total $24,750 $34,860 $41,600 (a) Identify each cost as being variable, fixed, or mixed. Cost of food sold Variable Wages and fringe benefits Mixed Fees paid delivery help Variable Rent on building Fixed Depreciation on equipment Utilities Fixed Mixed Supplies (soap, floor wax, etc.) Mixed Administrative costs Fixed (b) Use the high-low method to develop a schedule identifying the amount of each cost that is fixed per month or variable per unit. Total the amounts under each category to develop an equation for total monthly costs. Round variable cost answers to two decimal places. Cost of food sold Wages and fringe benefits Fixed Costs Variable Costs $ 0 $ 0x X 0 x 0x X Fees paid delivery help 0 0 x x Rent on building 0 x 0 X Depreciation on equipment 0 x 0 X Utilities 0 x 0 XX Supplies (soap, floor wax, etc.) 0 x 0 XX Administrative costs 0x 0 X Total costs equation 0 * $ 0x X (c) Predict total costs for a monthly sales volume of 9,900 units. $ 0 x