Show Me How

All Bookmarks

Using High$-$Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output

Pizza Vesuvio makes specialty pizzas. Data for the past $8$ months were collected:

$\backslash$table$[[$Month$,$Labor Cost,Employee Hours$],[$January$,$$$6,800,410],[$February$,7,940,600],[$March$,9,699,680],[$April$,9,587,660],[$May$,8,290,530],[$June$,7,250,400],[$July$,9,290,620],[$August$,7,331,360]]$

Assume that this information was used to construct the following formula for monthly labor cost.

Total Labor Cost Employee Hours