Ullrich Framing is well known for the quality of its picture framing. Lucinda Ullrich, the company’s president, believes that the linear feet of framing used is the best predictor of framing costs for her company. She asked her assistant to accumulate the following data:

A. Use the high/low method to develop a total cost formula for Ullrich Framing. You will need to perform two separate calculations, one for feet of framing and one for number of mats.
B. Compare the cost formulas developed in question A. Why are there differences?
C. On what basis should Ullrich select a formula to predict framing costs? Would you recommend that Ullrich rely on the results of the high/lowmethod?

  • CreatedMarch 11, 2015
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