Frank Company Operates a Cafeteria for Its Employees

Multiple Choice

Frank Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below: Assume that the relevant range includes all of the activity levels mentioned in this problem. Using the high-low method of analysis, the variable cost per meal served in the cafeteria would be estimated to be:

A) $1.50
B) $2.00
C) $2.80
D) $1.00