Using High-Low to Calculate Fixed Cost, Calculate the Variable
Rate, and Construct a Cost Function
Pizza Vesuvio makes specialty pizzas. Data for the past 8 months
were collected:
Month
Labor Cost
Employee Hours
January
$7,000
360
February
8,140
550
March
9,899
630
April
9,787
610
May
8,490
480
June
7,450
350
July
9,490
570
August
7,531
310
Pizza Vesuvio's controller wants to calculate the fixed and
variable costs associated with labor used in the restaurant.
In your calculations, round the...