Question: EXERCISE 6-3 Applying the High-Low and Scattergraph Methods [LO2-CC8, 9, 10] Refer to the data in Exercise 6-1. Required: 1. Prepare a scattergraph by plotting

EXERCISE 6-3 Applying the High-Low and Scattergraph Methods [LO2-CC8, 9, 10]

EXERCISE 6-3 Applying the High-Low and Scattergraph Methods [LO2-CC8, 9, 10] Refer to the data in Exercise 6-1. Required: 1. Prepare a scattergraph by plotting custodial supplies expense on the vertical axis and occupancy- days on the horizontal axis. Fit a regression line to your plotted points by visual inspection. 2. What is the approximate monthly fixed cost? The approximate variable cost per occupancy-day? 3. Scrutinize the points on your graph, and explain why the high-low method would or would not yield an accurate cost formula in this situation. EXERCISE 6-3 Applying the High-Low and Scattergraph Methods [LO2-CC8, 9, 10] Refer to the data in Exercise 6-1. Required: 1. Prepare a scattergraph by plotting custodial supplies expense on the vertical axis and occupancy- days on the horizontal axis. Fit a regression line to your plotted points by visual inspection. 2. What is the approximate monthly fixed cost? The approximate variable cost per occupancy-day? 3. Scrutinize the points on your graph, and explain why the high-low method would or would not yield an accurate cost formula in this situation

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