Question

Jim Jones, the owner of Jim’s Place, want to analyze labor cost in his restaurant operations and has asked you for assistance. The operating statistics for the previous year are as follow:

	Number of Customers	Labor Cost
January	4,000	24,000
February	3,500	22,700
March	3,200	22,000
April	2,500	19,700
May	2,300	19,500
June	4,000	24,000
July	4,500	24,500
August	4,800	25,700
September	3,000	21,500
October	3,500	22,700
November	3,700	23,500
December	4,000	24,000

Please use the high/low two-point method to solve questions 33 to 36

33.What is the variable labor cost per customer?

Group of answer choices

a. $0.50.

b. $2.48.

c. $2.20.

d. $2.50.

34.

What is the total variable labor cost (high month)?

Group of answer choices

a. $11,904.

b. $5,704.

c. $10,904.

d. $5,400.

35.

What is the monthly fixed labor cost at Jim’s Place?

Group of answer choices

a. $14,696

b. $13,483

c. $13,796

d. $14,486

36.

What is the estimate of total labor cost if 6,000 customers are served during the month?

Group of answer choices

a. $28,676

b. $27,976

c. $28,869

d. $28,384

Answer 1