Dana Rand owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Rand's business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods, there are extra costs; however, even during nonpeak periods Rand must work more to cover her expenses. One of the major events Rand's customers request is a cocktail party. She offers a standard cocktail party and has developed the following cost structure on a per-person basis. Food and beverages Labor (0.8 hr. $11 per hour) Overhead (0.8 hr. $13 per hour) Total cost per person $13.00 8.80 10.40 $32.20 When bidding on cocktail parties, Rand adds a 20 percent markup to this cost structure as a profit margin. Rand is quite certain about her estimates of the prime costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented in the following table. These data indicate that overhead expenses vary with the direct-labor hours xpended. The $13 estimate was determined by dividing total overhead expended for the 12 months ($825,000) by total labor hours (61,300) and rounding to the nearest dollar. Month January February March April May June July August September October November December Labor Hours 5,800 6.900 3,600 6,700 3,100 2,900 5,500 4,600 2,500 5,600 7,800 6,300 61,300 Overhead Expenses $ 87,000 58,000 82,000 64,000 60,000 76,000 82,000 45,000 41,000 78,000 86,000 66,000 $ 825,000 Total Rand recently attended a meeting of the local chamber of commerce and heard a business consultant discuss regression analysis and its business applications. After the meeting, Rand decided to do a regression analysis of the overhead data she had collected. The following results were obtained. 52,000 Intercept (a) Coefficient (b) Required: 2. Using data from the regression analysis, develop the following cost estimates per person for a cocktail party. Assume that the level of activity remains within the relevant range. 3. Dana Rand has been asked to prepare a bid for a 280-person cocktail party to be given next month. Determine the minimum bid price that Rand should be willing to submit. 4. What other factors should Dana Rand consider in developing the bid price for the cocktail party? Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Using data from the regression analysis, develop the following cost estimates per person for a cocktail party. Assume that the level of activity remains within the relevant range. (Round intermediate calculations and final answers to 2 decimal places.) a. Variable cost per person Absorption (full) cost per person b. 0.00 Required 2 Required 3 Required 4 Dana Rand has been asked to prepare a bid for a 280-person cocktail party to be given next month. Determine the minimum bid price that Rand should be willing to submit. (Round intermediate calculations to 2 decimal places.) Minimum bid price