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Only question (c) and (d)-(ii) please. Reference) My answer of question (b) is 'Total costs of food = $68,600+($5.60*Number of diners)'. Please refer to this
Only question (c) and (d)-(ii) please.
Reference) My answer of question (b) is 'Total costs of food = $68,600+($5.60*Number of diners)'. Please refer to this answer.
Bottomless Pot operates a restaurant that offers all-you-can-eat buffet". The following data shows the costs of food for the buffet and the number of diners that ordered the buffet for last year, 2020. The restaurant manager is interested in finding the relationship between the costs of food and the number of diners. Month Number of diners Costs of food $ January February March April May June July August September October November December 2,832 4,895 3,920 3,840 4,150 2,395 4,272 3,985 2,520 4,732 2,633 3,935 55,900 68,600 59,700 58,600 62,000 54,600 63,300 60,400 53,900 69,900 56.900 51,200 Required: (a) The cost of food is a mixed cost. (1) Describe what is a mixed cost. (1) Explain briefly why you think the cost of food for the buffet is a mixed cost. (4 marks) (b) Using the high-low method, develop the cost formula for the total costs of food. (5 marks) (c) Estimate the total costs of food for the first quarter of 2021 if Bottomless Pot expects 15,500 diners for the quarter. (2 marks) (d) (1) (ii) Explain what is relevant range. Explain, using an example why would cost behaviour change outside the relevant range. The given example should use Bottomless Pot as referenceStep by Step Solution
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