Problem $3$

Jackson Company operates a cafeteria for its employees. The number of meals served each week

over the last seven weeks, along with the total costs of operating the cafeteria are given below:

Assume that the relevant range includes all of the activity levels mentioned in this problem.

Required:

$($a$)$ Using the high$-$low method of analysis, calculate the variable cost per meal served for ia

cafeteria costs.

$($b$)$ Calculate the fixed cost of the cafeteria.

$($c$)$ Construct a cost formula for total cafeteria costs.

$($d$)$ Estimate the total cafeteria costs to be incurred by Jackson Company if $1,720$ meals are

served.