Question: Hello! Can you please help me solve parts A, B, and C? Thanks! Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa



Hello! Can you please help me solve parts A, B, and C? Thanks!



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 benets 4,200 4,320 4,400 Fees paid delivery help 1,100 1,760 2,200 Rent on building 1,100 1,100 1,100 Depreciation on equipment 900 900 900 Utilities 800 920 1,000 Supplies (soap, floor wax, etc.) 250 340 400 Administrative costs 1.700 1.700 1.700 Total $20,050 $27,040 $31,700 (a) Identify each cost as being variable, xed, or mixed. Cost of food sold A v Wages and fringe benets A 7 Fees paid delivery help A v Rent on building A v Depreciation on equipment A v Utilities 0 Supplies (soap, oor wax, etc.) A v Administrative costs A w (b) Use the high-low method to develop a schedule identifying the amount of each cost that is xed 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 0 0 Wages and fringe benets 0 0 Fees paid delivery help 0 0 Rent on building 0 o Depreciation on equipment 0 0 Utilities 0 0 Supplies (soap, floor wax, etc.) o 0 Administrative costs 0 0 Total costs equation 0 o
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