Using the data in Exhibit 2 calculate the cost function (y=mx + b) using the high-low method a. Be sure to check for outliers in the data prior to choosing your high-low points.

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Actual Actual units cost $ 100,000 $ 106,000 $ 105,000 $ 120,000 $ 128,000 $ 132,000 $ 135,000 $ 140,000 $ 148,000 $ 150,000 $ 150,000 $ 120,000 $ 140,000 $ 130,000 $ 115,000 $ 112,000 $ 130,000 $ 154,000 $ 162,000 $ 112,000 $ 130,000 $ 143,000 $ 148,000 $ 143,000 Jan 1,000 1,100 Feb Mar 1,175 Apr May 1,250 1,410 1,520 Jun Jul Aug Sep 1,600 1,710 1,800 Oct 1,970 Nov 970 Dec 1,970 Jan Feb 1,510 1,650 Mar 1,450 Apr Мay Jun Jul Aug Sep 1,200 1,210 1,900 1,890 1,200 1,210 Oct 1,600 1,700 Nov Dec 1,850 Actual Actual units cost $ 100,000 $ 106,000 $ 105,000 $ 120,000 $ 128,000 $ 132,000 $ 135,000 $ 140,000 $ 148,000 $ 150,000 $ 150,000 $ 120,000 $ 140,000 $ 130,000 $ 115,000 $ 112,000 $ 130,000 $ 154,000 $ 162,000 $ 112,000 $ 130,000 $ 143,000 $ 148,000 $ 143,000 Jan 1,000 1,100 Feb Mar 1,175 Apr May 1,250 1,410 1,520 Jun Jul Aug Sep 1,600 1,710 1,800 Oct 1,970 Nov 970 Dec 1,970 Jan Feb 1,510 1,650 Mar 1,450 Apr Мay Jun Jul Aug Sep 1,200 1,210 1,900 1,890 1,200 1,210 Oct 1,600 1,700 Nov Dec 1,850

Answer rating: 100% (QA)

Highlow method is a way of attempting to separate out fixed and variable costs given a limited amoun... View the full answer