Question
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
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
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