Question: . Estimating a cost function, high-low method. Laurie Daley is examining customer-service costs in the southern region of Capitol Products. Capitol Products has more than

. Estimating a cost function, high-low method. Laurie Daley is examining customer-service costs in the southern region of Capitol Products. Capitol Products has more than 200 separate electrical products that are sold with a six-month guarantee of full repair or replacement with a new product. When a product is returned by a customer, a service report is prepared. This service report includes details of the problem and the time and cost of resolving the problem. Weekly data for the most recent 8-week period are as follows:

Week Customer-Service Department Costs Number of Service Reports

1 13700 190

2 20,900

275

3 13,000

1 15

4 18,800

395

5 14,000

265

6 21,500

455

7 16,900

340

8 21000

305

Required

Use the high-low method to compute the cost function, relating customer-service costs to the number of service reports

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