ASSIGNMENT #6 QUESTION 1 A restaurant has the following 12 month record of sale revenue and wage costs: Month Sales Revenue Wage Costs January $24,900 $11,300 February $24,200 $11,100 March $25,600...

ASSIGNMENT #6
QUESTION 1
A restaurant has the following 12 month record of sale
revenue and wage costs:
Month	Sales Revenue	Wage Costs
January	$24,900	$11,300
February	$24,200	$11,100
March	$25,600	$11,200
April	$24,200	$11,400
May	$34,000	$13,200
June	$46,200	$18,600
July	$53,300	$21,600
August	$44,000	$16,100
September	$34,200	$15,100
October	$30,400	$12,800
November	$28,200	$11,200
December	$27,000	$13,000
Adjustments to the base information shown:
Included in July wages is a lump sum retroactive wage increase
of $1,800 which would not normally be part of July wage cost
In December, the restaurant catered a special Christmas function
that brought in $3,400 in sales revenue and cost the restaurant
an additional $900 in wages
The December wage figure also included $1,400 in Christmas
bonuses to the staff
Required:
a) Use the high low method to calculate the restaurant's
monthly fixed wage
b) If the following January's anticipated revenue is $46,500
what will be the anticipated wage cost?
c) Use the regression analysis method to calculate the
fixed cost component of monthly wages
Fixed Costs =	(sum Y)(sum X2) - (sum X)(sum XY)
	n (sum X2) - (sum X)2

Question 1 ASSIGNMENT #6 QUESTION 1 A restaurant has the following 12 month record of sale revenue and wage costs: MonthSales RevenueWage Costs January$24,900$11,300 February$24,200$11,100 March$25,600$11,200 April$24,200$11,400 May$34,000$13,200 June$46,200$18,600 July$53,300$21,600 August$44,000$16,100 September$34,200$15,100 October$30,400$12,800 November$28,200$11,200 December$27,000$13,000 Adjustments to the base information shown: Included in July wages is a lump sum retroactive wage increase of $1,800 which would not normally be part of July wage cost In December, the restaurant catered a special Christmas function that brought in $3,400 in sales revenue and cost the restaurant an additional $900 in wages The December wage figure also included $1,400 in Christmas bonuses to the staff Required: a) Use the high low method to calculate the restaurant's monthly fixed wage b) If the following January's anticipated revenue is $46,500 what will be the anticipated wage cost? c) Use the regression analysis method to calculate the fixed cost component of monthly wages Fixed Costs =(sum Y)(sum X2) - (sum X)(sum XY) n (sum X2) - (sum X)2