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Pork Bellies is continuing to re-evaluate all aspects of the business and would like you to look into staffing costs. Below is a summary of the monthly costs.
Staff number Number of meals Staff cost ($)January 20 700 27800February 22 250 14000March 10 200 12000April 20 500 20000May 24 650 23800June 28 450 18400July 16 50 20400August 14 150 8200September 24 350 18800October 24 600 22200November 16 300 16600December 32 750 32200
The Pork Bellies relevant range has been estimated to be between 300 and 600 meals.
Required: Question 1: Draw a scatter diagram of Pork Bellies meals and staff costs and mark the relevant range
Question 2: Use the high-low method to estimate the behaviour of Pork Bellies staff costs based on meal numbers within the relevant range. Use an equation to express the results of this estimation method.
Question 3: Using excel or a similar program construct a regression analysis to estimate:
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