Part III James Brown is the owner of Artisan Company, which specializes in catering. Among the services provides are outdoor parties and banquets for wedding and other functions. His business is profitable in the spring and summer months. During seasonal periods, there are extra costs. However, even during nonpeak periods, James must work to cover incurred X[ JCHSCS. One of the major events James customers requests is a wedding party. He offers a standard wedding party and has developed the following cost structure on a per-person basis: Fwd andbweraues $14.00 Lahorthr. @$11 narhnun 6.60 OMGadt.6h{.@$1-tperhwn 8.40 When bidding on weddings, James adds a 15% markup to this cost structure as a profit margin. Michael is quite certain about his estimates of the food and beverage and labor costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented in the following table. These data indicate that overhead expenses appear to vary with the direct labor hours expended. The $14 per hour overhead estimate was determined by dividing total overhead expended for the 12 months by total labor hours and rounding to the nearest dollar. M Lib-r Hm." (Judi-Id Exp-Ila Jammy 2.933 ....... 559.1110 Flinn 2.50] . 551110 km 3,033 . $1310 Apr! 503 . 67MB May 4.2m. ensue June . . 5.503 . 74.1110 July .. 5mm 7mm Augm 7m] 7550!) 39pm 7.503 . 77m: 4.503 . 3.10] . 6.503 . 651.300 52.030 7.3930 Required: 1. Use the highlow method to estimate the xed and variable cost components of overhead. Express this estimate in the form Y: a + bX. 2. Use the linear regression approach to estimate the xed and variable cost components of overhead. Express this estimate in the form Y: a + bX. 3. Which of the three approaches (i.e., the $14 per hour, highlow, or regression) to estimating overhead cost would you recommend to James, and why? 4. James has been asked to prepare a bid for a 250-person cocktail party to be given next month. Determine the minimum bid price that James should be willing to submit. 5. What other factors do you think James Should consider in developing the bid price for the cocktail party