Required information [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. Chavez's 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 has estimated the cost per guest as follows: Food and beverages Labor (0.5 hour $11.00 /hr.) Overhead (0.5 hour @ $18.68/hr.) Total cost per guest $ 17.00 5.50 9.34 $ 31.84 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 15% markup to yield a price of about $31 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: Labor Overhead Month Hours Expenses January 3,200 $ 52,000 February 2,300 56,000 March 2,500 57,000 April 3,700 61,000 May 4,000 64,000 June 5,000 68,000 July 6,000 71,000 August 7,000 74,000 September 6,500 72,000 October 4,000 65,000 November 3,600 61,000 December 6,000 69,000 Total 53,800 $770,000 Chavez has received a request to bid on a 155-guest fundraising cocktail party to be given next month by an impa local charity. (The party would last the usual three hours.) She would like to win this contract because the guest lis charity event includes many prominent individuals that she would like to secure as future clients. Maria is confider these potential customers would be favorably impressed by her company's services at the charity event. 2a. Use the least squares regression method to estimate the fixed and variable components of overhead expenses. 2b. Express these estimates in the form Y = a + bx. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Use the least-squares regression method to estimate the fixed and variable components of overhead expenses. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Fixed cost per month Variable cost per hour Required 2B Required 2A 4 Next > 5 6 7 of 7 of 7 !!! July August September October November December Total J, UUU 6,000 7,000 6,500 4,000 3,600 6,000 53,800 68,000 71,000 74,000 72,000 65,000 61,000 69,000 $770,000 ces Chavez has received a request to bid on a 155-guest fundraising cocktail party to be given next local charity. (The party would last the usual three hours.) She would like to win this contract bec charity event includes many prominent individuals that she would like to secure as future clients these potential customers would be favorably impressed by her company's services at the charit 3. If Chavez charges her usual price of $31 per guest for the 155-guest cocktail party, how much contribu serving this event? (Round your intermediate calculations and final answers to 2 decimal places.) Total contribution margin May June July August September October November December Total 3,70 4,000 5,000 6,000 7,000 6,500 4,000 3,600 6,000 53,800 61,000 64,000 68,000 71,000 74,000 72,000 65,000 61,000 69,000 $770,000 ces Chavez has received a request to bid on a 155-guest fundraising cocktail party to be given next month by local charity. (The party would last the usual three hours.) She would like to win this contract because the charity event includes many prominent individuals that she would like to secure as future clients. Maria is these potential customers would be favorably impressed by her company's services at the charity event. 4. How low could Chavez bid for the charity event in terms of a price per guest and still break even on the event it answer to the nearest whole dollar amount.) Bid price per guest Required information [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. Chavez's 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 has estimated the cost per guest as follows: Food and beverages Labor (0.5 hour $11.00 /hr.) Overhead (0.5 hour @ $18.68/hr.) Total cost per guest $ 17.00 5.50 9.34 $ 31.84 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 15% markup to yield a price of about $31 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: Labor Overhead Month Hours Expenses January 3,200 $ 52,000 February 2,300 56,000 March 2,500 57,000 April 3,700 61,000 May 4,000 64,000 June 5,000 68,000 July 6,000 71,000 August 7,000 74,000 September 6,500 72,000 October 4,000 65,000 November 3,600 61,000 December 6,000 69,000 Total 53,800 $770,000 Chavez has received a request to bid on a 155-guest fundraising cocktail party to be given next month by an impa local charity. (The party would last the usual three hours.) She would like to win this contract because the guest lis charity event includes many prominent individuals that she would like to secure as future clients. Maria is confider these potential customers would be favorably impressed by her company's services at the charity event. 2a. Use the least squares regression method to estimate the fixed and variable components of overhead expenses. 2b. Express these estimates in the form Y = a + bx. Complete this question by entering your answers in the tabs below. Required 2A Required 2B Use the least-squares regression method to estimate the fixed and variable components of overhead expenses. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Fixed cost per month Variable cost per hour Required 2B Required 2A 4 Next > 5 6 7 of 7 of 7 !!! July August September October November December Total J, UUU 6,000 7,000 6,500 4,000 3,600 6,000 53,800 68,000 71,000 74,000 72,000 65,000 61,000 69,000 $770,000 ces Chavez has received a request to bid on a 155-guest fundraising cocktail party to be given next local charity. (The party would last the usual three hours.) She would like to win this contract bec charity event includes many prominent individuals that she would like to secure as future clients these potential customers would be favorably impressed by her company's services at the charit 3. If Chavez charges her usual price of $31 per guest for the 155-guest cocktail party, how much contribu serving this event? (Round your intermediate calculations and final answers to 2 decimal places.) Total contribution margin May June July August September October November December Total 3,70 4,000 5,000 6,000 7,000 6,500 4,000 3,600 6,000 53,800 61,000 64,000 68,000 71,000 74,000 72,000 65,000 61,000 69,000 $770,000 ces Chavez has received a request to bid on a 155-guest fundraising cocktail party to be given next month by local charity. (The party would last the usual three hours.) She would like to win this contract because the charity event includes many prominent individuals that she would like to secure as future clients. Maria is these potential customers would be favorably impressed by her company's services at the charity event. 4. How low could Chavez bid for the charity event in terms of a price per guest and still break even on the event it answer to the nearest whole dollar amount.) Bid price per guest