The Starfish

The Starfish restaurant$$s customer visits and total expenses over the last seven months

were as follows:

Month Customer Visits Expense

March $8,000$ $$136,000$

April $7,500$ $$128,625$

May $10,000$ $$165,500$

June $11,500$ $$187,625$

July $10,500$ $$172,875$

August $12,500$ $$202,375$

September $10,000$ $$165,500$

$1)$ Assuming the number of customer visits is a measure of overall activity of the

restaurant, what is the cost formula for total expenses?

$2)$ Using the cost formula which you derived above, what amount of expenses

would you expect to be incurred at an activity level of $14,000$ customer visits?