ks Window Help \": 35% Thu Jan 25 2:36 Solved. Maria Chavez owns a catering comp
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ks Window Help ": 35% Thu Jan 25 2:36 Solved. Maria Chavez owns a catering company that ser. High-Low Method I Formula | Example | Manage rk Help Save & Exit Sub Saved Check my wo Required information The following information applies to the questions displayed below Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavez's business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times. One of the major events Chavez's customers request is a cocktail party, She offers a standard cocktail party and has estimated the cost per guest as follows: $ 16.00 4.50 9.31 $ 29.81 Food and beverages Labor (0.5 hour $9.00 /hr.) overhead (0.5 hour $18.62/hr Total cost per quest The standard cocktail party lasts three hours and Chavez hires one worker for every that works out to one-half hour of labor per guest. These workers are hired only as needed and are paid only far the hours they actually work. when bidding guest. She is confident about her estimates of the costs of food and beverages and labor but is not as comfortable with the estimate of overhead cost. The $18.62 overhead cost per labor-hour was determined by dividing total overhead expenses for the last 12 months by total labor-hours for the same period. Monthly data concerning overhead costs and labor-hours follow six guests, so on cocktail parties. Chavez adds a 11% markup to yield a price of about $33 per FI F6 F7 FB F4 F5Explanation / Answer
Formula for Least squares regression : Y = a + bX
where, Variable unit = b = n . sum(xy) - sumx . sumy / n . sum x2 - (sum x)2
and fixed unit = a = sum y - b (sum x) / n
Now, calculate the values :
Variable cost = b = n . sum(xy) - sum x . sum y / n . sum x2 - (sum x)2
= 12 * 3351600000 - 58400 * 662000 / 12 * 317080000 - (58400)2
b = 1558400000 / 394400000 = 3.9513
and fixed cost = a = [sum y - b (sum x)] / n
a = (662000 - 3.9513 * 58400 ) / 12 = 35937
Thus, the equation become : Y = 35937 + 3.9513 X
x y x2 xy 2300 43000 5290000 98900000 2800 47000 7840000 131600000 3000 48000 9000000 144000000 4200 52000 17640000 218400000 4500 55000 20250000 247500000 5500 59000 30250000 324500000 6500 62000 42250000 403000000 7500 65000 56250000 487500000 7000 63000 49000000 441000000 4500 56000 20250000 252000000 4100 52000 16810000 213200000 6500 60000 42250000 390000000 sum 58400 sum 662000 sum317080000 sum3351600000Related Questions
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