The owner of the ABC 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. Meals Utilities served Cost January 3,600 P1,560 February 2,000 P1,060 March 2,900 P1,350 April 3,500 P1,500 May 3,900 P1,580 June 2,100 P1,250 July 1,900 P1,100 August 1,000 P 850 September 1,250 P 990 October 1,400 P 880 November 2,600 P1,180 Required: 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.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
The owner of the ABC 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.
Meals Utilities
served Cost
January 3,600 P1,560
February 2,000 P1,060
March 2,900 P1,350
April 3,500 P1,500
May 3,900 P1,580
June 2,100 P1,250
July 1,900 P1,100
August 1,000 P 850
September 1,250 P 990
October 1,400 P 880
November 2,600 P1,180
Required:
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.
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