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Selling and Administrative Costs Da avid incurred $200 a month in accounting fees and spent $500 on various promotional and ad- vertising materials during the

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Selling and Administrative Costs Da avid incurred $200 a month in accounting fees and spent $500 on various promotional and ad- vertising materials during the year. He also paid $1,000 for liability insurance. 6. Use regression analysis and the highllow method to calculate the monthly fixed cost and the variable component of the utility expenses incurred by The Daily Grind. Use cups of coffee sold as the independent variab and utility expense as the dependent variable in your regression analysis. After calculating both numbers, round your final answers to t decimal places. 7. Compare the regression results with the high/le results. Which model would you suggest? 8. Calculate the contribution margin earned for Sales Revenue During the first year of operations, David set the shop's prices to be slightly lower than their competitors'. The Daily Grind sells a small cup of coffee for $1.25, a me- dium cup for $1.65, and a large cup for $1.95. Sales revenue was as follows: Month Sales in Cups of Coffee January 9,300 cups February 9,800 March 10,850 April 9,500 May 9,300 June 9,000 (round to four decimal places). 9. Assume the sales mix given in the problem. What is Daily Grind's break-even point in terms of the number of cups of coffee sold during the year? 10. David is contemplating adding a new 20-ounc product for the coming year and discontinuing sales of the small 8-ounce cup. The new cup, li and sleeve cost the same as the 16-ounce cup. 2.800 Asarme each product (round to three decimal places) utilities and the weighted-average contribution margin Selling and Administrative Costs Da avid incurred $200 a month in accounting fees and spent $500 on various promotional and ad- vertising materials during the year. He also paid $1,000 for liability insurance. 6. Use regression analysis and the highllow method to calculate the monthly fixed cost and the variable component of the utility expenses incurred by The Daily Grind. Use cups of coffee sold as the independent variab and utility expense as the dependent variable in your regression analysis. After calculating both numbers, round your final answers to t decimal places. 7. Compare the regression results with the high/le results. Which model would you suggest? 8. Calculate the contribution margin earned for Sales Revenue During the first year of operations, David set the shop's prices to be slightly lower than their competitors'. The Daily Grind sells a small cup of coffee for $1.25, a me- dium cup for $1.65, and a large cup for $1.95. Sales revenue was as follows: Month Sales in Cups of Coffee January 9,300 cups February 9,800 March 10,850 April 9,500 May 9,300 June 9,000 (round to four decimal places). 9. Assume the sales mix given in the problem. What is Daily Grind's break-even point in terms of the number of cups of coffee sold during the year? 10. David is contemplating adding a new 20-ounc product for the coming year and discontinuing sales of the small 8-ounce cup. The new cup, li and sleeve cost the same as the 16-ounce cup. 2.800 Asarme each product (round to three decimal places) utilities and the weighted-average contribution margin

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