John Smith is requesting your assistance in determining a cost equation for forecasting his expenses for his ABC restaurant. He provides costs at two extremes as follows:

	Monthly Covers
	1000	3000	Type of Cost	FC	VC/unit
Salaries	15000	15000
Wages	3000	9000
Employee benefits	4000	6000
Supplies	1500	4500
Utilities	5000	8000
Rent	5000	5000
Operating expenses	1500	4500
Insurance	1000	1000

a) Please identify the Type of Cost for each line. (4 points) Please use "F" as Fixed cost, "V" as Variable cost, "M" as Mixed cost.

b) Calculate the fixed cost and variable cost per unit. (5 points) If one blank did not have a number to put in, please put zero (0.00) in it.

c) Please provide the Total Fixed Cost and Total Variable Cost per Unit. (2 points) Total Fixed Cost: Total Variable Cost:

d) If the restaurant has 2,500 covers, what is the total cost? (1 point) Total Cost: