Question

The president and the controller of Toluca Transformer Company (Mexico) have agreed that refinement of the company’s cost measurements will aid planning and control decisions. They have asked you to measure the function for mixed-cost behavior of repairs and maintenance from the following sparse data. Currency is the Mexican peso (P).
Monthly Activity in Machine Hours . Monthly Repair and Maintenance Cost
7,900 .................... P 202,000,000
11,900 ................... P 272,000,000



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  • CreatedNovember 19, 2014
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