Daydream operates a hot dog stand adjacent to a football stadium. To plan for the future,...

 

Transcribed Image Text:

Daydream operates a hot dog stand adjacent to a football stadium. To plan for the future, it wants to determine its cost behaviour patterns and has collected the following monthly data for operating costs and the number of hot dogs served: Month Number of hot Total operating dogs cost (£) September 1,500 3,800 October 3,275 5,930 November 2,425 4,910 December 2,500 6,000 January 3,150 7,315 February 1,550 4,125 Assuming that this activity is within Daydream's' relevant range, and using the high-low method, which cost function will be used to estimate the total operating costs (TC) for different quantities of hot dogs (Q)? A) TC (£) = 605 + 2.13Q B) TC (£) = 2,000 + 1.60Q C) TC (£) = 500 + 2.20Q D) TC (£) = 2,000 + 1.20Q %3D Daydream operates a hot dog stand adjacent to a football stadium. To plan for the future, it wants to determine its cost behaviour patterns and has collected the following monthly data for operating costs and the number of hot dogs served: Month Number of hot Total operating dogs cost (£) September 1,500 3,800 October 3,275 5,930 November 2,425 4,910 December 2,500 6,000 January 3,150 7,315 February 1,550 4,125 Assuming that this activity is within Daydream's' relevant range, and using the high-low method, which cost function will be used to estimate the total operating costs (TC) for different quantities of hot dogs (Q)? A) TC (£) = 605 + 2.13Q B) TC (£) = 2,000 + 1.60Q C) TC (£) = 500 + 2.20Q D) TC (£) = 2,000 + 1.20Q %3D

Answer rating: 100% (QA)

D TC 2000 120Q Calculations Variable cost per unit Highest level Co... View the full answer