Chapter 6.A, Problem 12P

To determine

Scatter Graph:A graphical presentation to express the relationship between two variables by using scatter plot is called a scatter graph.

1. The preparation of scatter graph plot.

2. The estimated fixed cost and variable cost of overhead expenses and express it in the form of Y= a + bX.

3. The contribution margin for $31 per guest.

4. The price per guest to break-even.

5. Recommend whether Chavez should bid below $31 per guest or not and why or why not.