The Aust Corporation has gathered the following data on its copy machine costs for the first eight months of the year.

Required
a. Prepare a scattergraph of the cost information and then choose a line that you believe best represents the cost function. Represent your chosen line with a cost equation of the form y = mx + b. Show your calculations.
b. Using the high-low method, what is the variable cost per copy?
c. Using the high-low method, what is the fixed cost per month?
d. Using the high-low method, represent the cost function with a cost equation of the form y = mx + b.
e. Using your cost equation from part (d), provide your best estimate of the copy costs for September if 80,000 copies will be made. Why does your estimate differ from the $5,100 cost incurred in April?

Transcribed Image Text:

MonthNumber of Copies January February MMarch April May June July August 40,000 35,000 60,000 80,000 85,000 75,000 82,000 105,000 Total Copy Cost 53,500 $3,200 $4,100 $5,100 $5,600 $4,800 $5,300 56,000