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 Cost of food sold $10,000 $16,000 $20,000 Wages and fringe benefits 5.150 5.240 5.300 Fees paid delivery help 1,150 1,840 2.300 Rent on building 1,400 1,400 1,400 Depreciation on equipment 800 800 800 Utilities 700 760 800 Supplies (soap, floor wax, etc.) 250 340 400 Administrative costs 1.200 1.200 1.200 Total $20,650 $27.580 $32.200 (a) Identify each cost as being variable, fixed, or mixed. Cost of food sold Variable Wages and fringe benefits Mixed Fees paid delivery help Variable Renton building Fixed Depreciation on equipment Fixed Utilities Mixed Supplies (soap, floor wax, etc.) Mixed Administrative costs Fixed s (6) 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 each category to develop an equation for total monthly costs. Round variable cost answers to two decimal places. Fixed Costs Variable Costs Cost of food sold OS 2X Wages and fringe benefits 0.03 X Fees paid delivery help 0.23 X Rent on building 1,400 0 X Depreciation on equipment 800 0 X Utilities x 0.02 X Supplies (soap, floor wax, etc.) 0.03 X Administrative costs 1,200 0 X Total costs equation S XS 2.31 X (c) Predict total costs for a monthly sales volume of 9,400 units. $0 x