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The cafeteria department at Mercy Hospital has experienced the following costs and number of meals served from January through July of 20x7: Month Cafeteria Costs
The cafeteria department at Mercy Hospital has experienced the following costs and number of meals served from January through July of 20x7: Month Cafeteria Costs Meals Served January February March April May June July August September $31,800 34,400 36,900 38,300 38,600 34,700 36,300 43,000 41,200 8,800 9,000 9,800 10,200 10,500 9,200 9,700 12,000 11,500 a. Using the high-low method of cost estimation, calculate the variable cost per meal served. b. The estimate of the fixed costs of running the cafeteria department using the high-low method is. C. What is the cost function derived using the high-low method, which can be used to estimate the costs of running the cafeteria. d. What will the cafeteria cost be for 6,000 meals
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