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 62,000 copies will be made. Why does your estimate differ from the $5,800 cost incurred in June?

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Month Number of Copies Total Copy Cost 46,000 January February $4,600 $4,400 42,000 March 58,000 $5,300 April May $6,300 $5,000 64,000 57,000 June 62,000 $5,800 $6,500 July August 68,000 71,000 $7,300