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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

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:

Monthly sales in units
5,000 8,000 10,000
Cost of food sold $10,000 $16,000 $20,000
Wages and fringe benefits 4,200 4,320 4,400
Fees paid delivery help 1,100 1,760 2,200
Rent on building 1,100 1,100 1,100
Depreciation on equipment 900 900 900
Utilities 800 920 1,000
Supplies (soap, floor wax, etc.) 250 340 400
Administrative costs 1,700 1,700 1,700
Total $20,050 $27,040 $31,700

(a) Identify each cost as being variable, fixed, or mixed. Cost of food sold AnswerVariableFixedMixedimage text in transcribed

Wages and fringe benefits AnswerVariableFixedMixedimage text in transcribed

Fees paid delivery help AnswerVariableFixedMixedimage text in transcribed

Rent on building AnswerVariableFixedMixedimage text in transcribed

Depreciation on equipment AnswerVariableFixedMixedimage text in transcribed

Utilities AnswerVariableFixedMixedimage text in transcribed

Supplies (soap, floor wax, etc.) AnswerVariableFixedMixedimage text in transcribed

Administrative costs AnswerVariableFixedMixedimage text in transcribed

(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.

Fixed Costs Variable Costs
Cost of food sold Answerimage text in transcribed

Answerimage text in transcribed

Wages and fringe benefits Answerimage text in transcribed

Answerimage text in transcribed

Fees paid delivery help Answerimage text in transcribed

Answerimage text in transcribed

Rent on building Answerimage text in transcribed

Answerimage text in transcribed

Correct 1.00 points out of 1.00

Depreciation on equipment Answerimage text in transcribed

Answerimage text in transcribed

Correct 1.00 points out of 1.00

Utilities Answerimage text in transcribed

Answerimage text in transcribed

Supplies (soap, floor wax, etc.) Answerimage text in transcribed

Answerimage text in transcribed

Administrative costs Answerimage text in transcribed

Incorrect 0.00 points out of 1.00

Answerimage text in transcribed

Total costs equation Answerimage text in transcribed

Answerimage text in transcribed

need help with part b

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