Question

The Salinas 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 70,000 copies will be made. Why does your estimate differ from the
$7,000 cost incurred in March?



$1.99
Sales6
Views242
Comments0
  • CreatedFebruary 21, 2014
  • Files Included
Post your question
5000