Data for scatter diagram:
Month	Sales Orders	Order-Processing Costs
1	3,000	$ 82,700
2	1,500	50,375
3	4,400	120,700
4	2,800	81,900
5	2,300	69,775
6	1,200	43,100
7	2,000	62,500

Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs Month Sales Orders Order-Processing Costs $49,620 30,225 72,420 49,140 41,865 25,860 37,500 3,000 1,500 4,400 2,800 2,300 1,200 2,000 2 4 6 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs 8,400 +$ 14.55 X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram 14,000x +$ 24.25 X X Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs Month Sales Orders Order-Processing Costs $49,620 30,225 72,420 49,140 41,865 25,860 37,500 3,000 1,500 4,400 2,800 2,300 1,200 2,000 2 4 6 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs 8,400 +$ 14.55 X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram 14,000x +$ 24.25 X X