Please don't provide answer in image fromat ..thank you Cost Behavior Analysis in a Restaurant: High-Low Cost EstimationAssume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales:Cost of food soldWages and fringe benefitsFees paid delivery helpRent on buildingDepreciation on equipmentUtilitiesSupplies (soap, floor wax, etc.)Administrative costsTotal(a) Identify each cost as being variable, fixed, or mixed.Cost of food soldWages and fringe benefitsFees paid delivery helpRent on buildingDepreciation on equipmentUtilitiesSupplies (soap, floor wax, etc.) FixedAdministrative costsFixedMonthly sales in units5,000 8,000 10,000$10.000 $16,000$20,0004,200 4,320 4,4001,200 1,9202,4001,300 1,300 1,300500500 500800920 1.0002002603001,6001,600 1.600$19.800 $26,820 $31.500Cost of food soldWages and fringe benefitsFees paid delivery helpRent on buildingDepreciation on equipmentUtilitiesSupplies (soap, floor wax, etc.).Administrative costsTotal costs equationVariable +MixedVariable +FixedFixedMixed(b) Use the high-low method to develop a schedule identifying the amount of each cost that is fixed per month or variable per unit. Total the amounts under eachcategory to develop an equation for total monthly costs.Round variable cost answers to two decimal places.$Fixed Costs0 $4,000 ✓0✔1,100 x900 x600 ✓100 ✓1,700 x8,400 x S$✔• ✓● ✓##Variable Costs2✔ X0.04 X0.22 X X0X0✔ X0.04 X0.03 x X0✔ X2.33 x X(c) Predict total costs for a monthly sales volume of 9,100 units.$ 31,234x

Lets understand the basics. In high low method, total costs gets separated between the fixed costs…

Cost Behavior Analysis in a Restaurant. High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Monthly sales in units 5,000 8,000 10,000 $10.000 $16,000 $20,000 4.200 4.320 4,400 Cost of food sold Wages and fringe benefits Fees paid delivery help Rent on building Depreciation on equipment Utilities Supplies (soap, floor wax, etc.) Administrative costs Total 1.200 1,920 2.400 1.300 1,300 1.300 500 500 500 800 920 1.000 200 260 300 1,600 1,600 1.600 $19.800 $26,820 $31.500

Cost Behavior Analysis in a Restaurant. High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Monthly sales in units 5,000 8,000 10,000 $10.000 $16,000 $20,000 4.200 4.320 4,400 Cost of food sold Wages and fringe benefits Fees paid delivery help Rent on building Depreciation on equipment Utilities Supplies (soap, floor wax, etc.) Administrative costs Total 1.200 1,920 2.400 1.300 1,300 1.300 500 500 500 800 920 1.000 200 260 300 1,600 1,600 1.600 $19.800 $26,820 $31.500

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 57P: Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent...

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