Zeta Lambda fraternity has an annual alumni golf outing. A local caterer provides lunch and a tent.
Question:
Zeta Lambda fraternity has an annual alumni golf outing. A local caterer provides lunch and a tent. The fraternity pays a flat fee for the tent and an additional amount for each fraternity brother served. However, in the past the brothers have never been able to determine how much the caterer is going to charge. In an effort to determine how much the caterer will charge this year, the brothers have tracked the cost and attendance data over the past four years.
Attendance Caterer Cost
210 $6,000
175 4,800
240 6,800
250 6,600
a. Use the high-low method to compute the food cost per person.
b. How much is the charge for the tent?
Cost Benefit Analysis Concepts and Practice
ISBN: 978-0137002696
4th edition
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer