Question: he Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Cost of

he Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:

Month

Cost of Electricity (Y)

Direct Labor-Hours (X)

January

$14,000

1,500

July

$17,000

2,000

What would be the best equation using the high-low method?

A. Y = $4,000 + $0.1667X

B. Y = $5,000 + $6X

C. Y = $6X

D. Y = $0.1667X

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