Question: Can you help with this problem? 1. (20 points) Jim Jones, the owner of Jim's Place, wants to analyze labor costs in his restaurant operations

Can you help with this problem?

Can you help with this problem? 1. (20 points) Jim Jones, the

1. (20 points) Jim Jones, the owner of Jim's Place, wants to analyze labor costs in his restaurant operations and has asked you to for assistance. The operating statistics for the previous year are as follows: Month Number of Customer Labor Costs January 2,200 $10,500 February 2,300 10,650 March 3,700 18,500 April 4,450 19,000 May 4,400 19,000 June 4,800 20,250 July 4,900 20,400 August 5,400 21,000 September 3,800 18,000 October 3,100 15,500 November 2,900 15,250 December 3,000 16,650 Requirements: a. Using regression via Excel spreadsheet, determine the variable cost per customer and the monthly fixed labor cost (copy-paste Excel printout here). b. If 5,500 customers are served in a month, what should be the variable labor cost, fixed labor cost and total labor costs based on the regression model? 2. (20 points) ABC Gaming Inc. plans to buy a nearby non- gaming hotel to expand its business. It requires at least 12% return on its investment after taxes. The firm has studied the 100-room hotel and come up with the following results: a. The rooms department generates 70% of the sales and MR 0 8

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