onthly sales. Help ut costs at varying levelse 2. Tutti Sandwich Shop has the following information regarding costs at various levels of month separate her costs into fixed costs and variable costs so that she can predict and evaluate her coste guests served. February ($) 16,000 16,800 15,600 16,350 March (5) 20,000 21,000 16,000 18,750 2.400 January (5) 10.000 10,500 15,000 12,750 2,400 600 1,000 500 2,600 Monthly Sales in Guests Served Cost of Sales (Food Cost) Salaries, Wages, and Benefits Telephone Rent on Building Depreciation of Equipment Utilities Maintenance and Repairs Administrative Costs 2,100 600 600 1,300 1,500 740 900 2,600 2,600 Variable Cost per Guest Fixed Costs 0 14,000 6,750 Hem Cost of Sales (Food Cost) Salaries, Wages, and Benefits Telephone Rent on Building Depreciation on Equipment Utilities Maintenance and Repairs Administrative Costs Total 500 a. Develop a total cost equation for Tutti that she can use at any volume of sales. Test Your Skills 365 Total Costs Total Costs Fixed Costs + (Variable Cost per Guest Number of Guests) b. Determine if Tutti is controlling Tutti i controlling her costs in April as well as she did in January, February, and March. She sold sandwiches to 30,000 guests in April. Calculate her expected costs based on her actual number of guests. Expected costs based on the total cost equation: Total Costs Fixed Costs + (Variable Cost per Guest Number of Guests) 30,000 c. Her actual total costs in April were $81,500. Were her actual costs in April higher or lower than expected based her total cost equation, and was this a favorable or unfavorable variance? Were actual costs higher or lower than expected? Were actual costs favorable or unfavorable