Michael White is the owner of "LPNKN" company which specializes in catering. Among the serviceprovide areoutdoorparties andbanquetsforweddingandotherfunctions.Hisbusiness is profitable in the spring and summer months. During seasonal periods there are extra costs, however, even during nonpeak periods, Michael must work to cover incurred expenses.

OneofthemajoreventMichael'scustomerrequestsisawedding party.Heoffered astandard wedding party and has developed the following cost structure on a per-person basis.

Food and beverages $14.00 Labor (.6 hr. @ $11 per hour) 6.60 Overhead (.6 hr. @ $14 per hour) 8.40 Total cost per person $29.00Month Labor Hours Overhead Expenses January 2,800 $59,000 February 2.500 55,000 March 3,000 60,000 Apri 4,500 67,000 May 4,200 64,000 June 6.500 74.000 July 5,500 71,000 August 7,000 75,000 September 7,500 77,000 October 4,500 68,000 November 3,100 62,000 December 6,500 73,000