In order to precisely decompose the weekly wage costs of Restaurant 241 into fixed and variable components, regression analysis was used

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In order to precisely decompose the weekly wage costs of Restaurant 241 into fixed and variable components, regression analysis was used. The estimates produced the equation below. Answer the following questions according to the regression output. (Again, assume there are only 4 weeks!)

Data used for week 1~4:         Y = Weekly Wage Cost, X = Weekly Sales Revenue

Regression Output:                 Y = 500 + 0.2 X

 

1. What is the variable wage cost per dollar of revenue? (2 points)

 

 

 

1. What is the fixed wage cost for October? (Hint: fixed cost for the whole month) (2 points)

 

 

 

1. If the sales revenue on a given week was 2,000 dollars, what is the total wage cost for that week? (2 points)