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Oriole Company recently opened for business. The owner wants a cost function estimate to help with future planning. The manager feels that last month's results
Oriole Company recently opened for business. The owner wants a cost function estimate to help with future planning. The manager feels that last month's results fairly represent costs over the coming six months. Last month 700 pizzas were sold. From the following information, use account analysis to estimate the firm's cost function for pizzas sold. $2,723 Wages for part-time help Pizza toppings 217 Pizza dough 301 Store rent 400 Depreciation on furniture and ovens 80 Napkins, paper plates, cups, and straws 91 Liability insurance 99 Advertising 60 Cleaning supplies 15 Managers' salary 1,290 119 Utilities (electricity and telephone) Soft drink purchases 448 * Your answer is incorrect. Develop a cost function using the data from the accounting records. (Round variable cost per unit to 2 decimal places, e.g. 15.25.) Cost function $ 3793 + $ 5.42 * Number of pizzas eTextbook and Media * Your answer is incorrect. Use the cost function to estimate the total costs if 900 pizzas are expected to be sold next month. Total cost for 900 pizzas $ 7615 e Textbook and Media
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