Question: Kimberly was attempting to estimate a model for her small business's overhead costs. She is 99.9% sure that overhead costs are driven primarily by production,


Kimberly was attempting to estimate a model for her small business's overhead costs. She is 99.9% sure that overhead costs are driven primarily by production, but she also knows that this cost isn't entirely variable. So she grabbed the last 8 months of production and overhead cost data, listed it out, and plotted it as follows. Month # of Units Produced Overhead Cost 1 250 $2,750 2 210 2.000 3 280 2,430 4 340 3,070 5 360 2,750 6 320 3,000 7 270 2.440 8 290 3,230(a1) V Your answer is correct. Kimberly is planning to use the high-low method to estimate this cost function. Is it important for the data to exhibit a linear relationship when using this method? It is important for the data to exhibit a linear relationship. eTextbook and Media Attempts: 1 of 2 used (b). Help Kimberly estimate her company's overhead costs using the high-low method. Write your final model in Y = m(X) + b format. Y = $ X+$ eTextbook and Media Save for Later Attempts: 0 of 2 used Submit
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