The owner of the Diamondhead restaurant in Honolulu 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.
|
|
Meals Utilities |
Utilities |
|
|
served |
cost |
|
January |
3,000 |
$450 |
|
February |
4,000 |
$480 |
|
March |
3,500 |
$490 |
|
April |
4,500 |
$530 |
|
May |
5,000 |
$570 |
|
June |
6,000 |
$620 |
|
July |
5,500 |
$560 |
Required:
a. Plot the data on the graph below.
b. Using the quick and dirty scattergraph method, derive a cost formula for utilities
cost.
c. c Use your cost formula to predict the utilities cost if 5,200 meals are served.