Marla Chavez owns a catering company that serves food and beverages at partles and business functions. Chavez's business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other tImes. One of the major events Chavez's customers request is a cocktall party. She offers a standard cocktall party and has estimated the cost per guest as follows: The standard cocktall party lasts three hours and Chavez hires one worker for every slx guests, so that works out to onehalf hour of labor per guest. These workers are hired only as needed and are pald only for the hours they actually work. When bidding on cocktall partles, Chavez adds a 15% markup to yleld a price of $31 per guest. She Is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $13.98 overhead cost per labor-hour was determIned by dividing total overhead expenses for the last 12 months by total labor-hours for the same perlod. Monthly data concerning overhead costs and labor-hours follow: Chavez has recelved a request to bid on a 180 -guest fundralsing cocktall party to be given next month by an Important local charlty. (The party would last the usual three hours.) She would like to win this contract because the guest list for this charlty event Includes many prominent Individuals whom she would like to secure as future cllents. Marla Is confident that these potentlal customers would be favorably Impressed by her company's services at the charlty event. Required: 2-a. Use the least-squares regression method to estlmate the fixed and varlable components of overhead expenses. 2-b. Express these estlmates in the form Y=a+bX. 3. If Chavez charges $31 per guest for the 180 -guest cocktall party, how much contribution margin will she earn serving this event? 4. How low could Chavez bid for the charlty event in terms of a price per guest and still break even on the event? 5. The Individual organizing the charlty's fundralsing event mentloned he already recelved a bld under $30 from another catering company. Do you think Chavez should bid below her normal $31 per guest price for the charlty event