Question: A restaurant has the following 12-month record of sales revenue and wage costs:
Adjustments to the base information shown: Included in the July wages is a lump-sum retroactive wage increase of $1,800, which would not normally be part of the July wage cost. Also, in December, the restaurant catered a special Christmas function that brought in $3,400 in sales revenue, and cost the restaurant an additional $900 in wages. The December wage figure also included $1,400 in Christmas bonuses to the staff. Use the high-low method to calculate the restaurant's monthly fixed wage costs.