Food and beverages Labor (0.7 hr. 8 $12 per hour) Overhead (0.7 hr. & $10 per hour) Total cost per person $13.00 8.40 9.10 $10.50 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-abor hours expended. The $13 estimate was determined by dividing total overhead expended for the 12 months ($741,000) by total labor hours (56.100) and rounding to the nearest dollar. Month January February March April May June July August September October November December Total Labor Hours 3,000 8,300 5,600 7.500 5,600 4,300 3,300 2,700 3,500 6, 100 3,500 4,700 56,100 Overhead Expenses $ 40,000 B4,000 88,000 50,000 54,000 44,000 65,000 64,000 77,000 56,000 41,000 78,000 $741,000 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. Intercept (a) Coefficient (5) 52,000 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 220-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