Question

Sympco Glass manufactures insulated windows. The firm’s repair and maintenance (R&M) cost is mixed and varies most directly with machine hours worked. The following data have been gathered from recent operations:


a. Use the high–low method to estimate a cost formula for repairs and maintenance.
b. Use least squares regression to estimate a cost formula for repairs and maintenance.
c. Does the answer to (a) or to (b) provide the better estimate of the relationship between repairs and maintenance costs and machine hours?Why?


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  • CreatedJune 03, 2014
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