Compute the expected utilities cost if 5,200 meals are served, using: 1) THE HIGH-LOW METHOD ANALYSIS 2) USING THE LEASE-SQUARES REGRESSION METHOD. The owner of the Queensland Restaurant would like to determine the fixed and variablecomponents of the restaurant's utility expenses. The owner believes that the variable component ofthe utilities cost is driven by the number of meals served.МealsUtilitiesserved3,6002,0002,9003,500CostP1,560P1,060P1,350P1,500P1,580P1,250P1,100P 850P 990P 880P1,180JanuaryFebruaryMarchAprilМayJune3,9002,1001,9001,000JulyAugustSeptember 1,250October1,400November2,600

The high-low technique divides fixed and variable expenses using a little quantity of information.…

Answered: Compute the expected utilities cost if…

Compute the expected utilities cost if 5,200 meals are served, using: 1) THE HIGH-LOW METHOD ANALYSIS 2) USING THE LEASE-SQUARES REGRESSION METHOD.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Compute the expected utilities cost if 5,200 meals are served, using:
1) THE HIGH-LOW METHOD ANALYSIS
2) USING THE LEASE-SQUARES REGRESSION METHOD.

The owner of the Queensland Restaurant would like to determine the fixed and variable
components of the restaurant's utility expenses. The owner believes that the variable component of
the utilities cost is driven by the number of meals served.
Мeals
Utilities
served
3,600
2,000
2,900
3,500
Cost
P1,560
P1,060
P1,350
P1,500
P1,580
P1,250
P1,100
P 850
P 990
P 880
P1,180
January
February
March
April
Мay
June
3,900
2,100
1,900
1,000
July
August
September 1,250
October
1,400
November
2,600

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