Problem 2: Pizza Pourri (Cost Estimation) Davide, the owner of Pizza Pourri, is trying to forecast operating costs for the next month. Davide estimates that the restaurant will produce 50,000 pizzas next month. To estimate operating costs, Davide collected operating costs for the past 24 months Month 1 2 3 Operating Costs $332,444 $321,686 $291,571 Pizzas Produced 62,500 56,470 51,130 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 $290,498 $259,237 $272,513 $279,030 $322,222 $319,956 $328,329 $356,845 $372,211 $387,804 $363,076 $324,716 $307,918 $293,938 $283,496 $315,742 $323,993 $376,459 $246,156 $264,414 $326,262 44,940 36,700 43,780 47,790 55,160 62,490 67,250 72,520 77,380 76,390 70,910 65,580 59,910 53,420 51,120 54,230 62,510 72,340 39,520 45,760 56,980 (1) Using High-Low method, a) What are the estimated monthly fixed costs of the restaurant and the estimated variable cost per pizza? (1.5 points) b) What is the estimated operating cost of producing 50,000 pizzas if Davide uses the High-Low method? (0.5 points) (2) Using simple regression, a) What are the estimated monthly fixed costs of the restaurant and the estimated variable cost per pizza? (2 points) b) What percentage of the variation in costs is explained by the regression equation? (0.5 points) c) What is the estimated operating cost of producing 50,000 pizzas if Davide uses regression analysis? (0.5 points)