Use the following to answer questions 1-2:

Golden Dragon Restaurant would like to estimate the variable and fixed components of its

utilities costs and has compiled the following data for the last five months of operations.

Month Meals served Utilities costs

December 550 $401.00

January 300 $360.00

February 250 $347.50

March 400 $385.50

April 600 $414.00

1. Using the high-low method of analysis, the estimated variable utilities cost per meal

served is:

A) $0.22

B) $0.73

C) $0.69

D) $0.19

2. Using the high-low method of analysis, the estimated monthly fixed component of

utility cost is:

A) $ 66.50

B) $300.00

C) $303.00

D) $331.00