Question: Estimating a cost function The controller of the Ijiri Company wants you to estimate a cost function from the following two observations in a general

Estimating a cost function The controller of the Ijiri Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance:

Required1. Estimate the cost function for maintenance.2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain.

Maintenance Costs Incurred Month January February Machine-Hours 6,000 10,000 $4,000 5,400

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