Required information Case 5A-12 Analysis of Mixed Costs in a Pricing Decision [LO5-11 The following information applies to the questions displayed below Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavezs business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times. One of the major events Chavez's customers request is a cocktail party. She offers a standard cocktail party and t as follows Food and beverages Labor (8.5 hour $10.80 hr.) Overhead (8.5 hour $18.68/hr.) Total cost per guest $16.00 5.00 9.34 38.34 The standard cocktail party lasts three hours and Chavez hires one worker for every six guests, so that works out to one- half hour of labor per guest These workers are hired only as needed and are paid only for the hours they actually work when bidding on cocktail parties. Chavez adds a 12% markup to yield a price of about $39 per guest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $18 68 overhead cost per labor-hour was determined by dividing total overhead expenses for the last 12 months by total labor-hours for the same period. Monthly data concerning overhead costs and labor-hours follow Prev 8 VBNM