Mller's Dairy Limited produces luxury cheese. The total units of output and corresponding total costs for the

Möller's Dairy Limited produces luxury cheese. The total units of output and corresponding total costs for the year 2015 were as follows:

a) Calculate the cost function for the year 2015, using: 

(i) the graphical (-scattergraph) method 

(ii) the high-low method. Plot the cost function you obtained from the high-low method into the diagram.

b) Describe one advantage of each of the two above-mentioned methods.

c) Discuss the criticisms of the graphical and high-low methods. To what extent can the least-squares method for cost estimation overcome the articulated shortcomings?

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Month Units of Output £ Jan. 2015 Feb. 2015 850 550 540 500 Mar. 2015 650 650 760 Apr. 2015 May 2015 Jun. 2015 Jul. 2015 900 500 400 750 550 700 950 710 Aug. 2015 Sep. 2015 Oct. 2015 800 1,000 600 660 550 Nov. 2015 960 800 Dec. 2015 600 600 Month Units of Output £ Jan. 2015 Feb. 2015 850 550 540 500 Mar. 2015 650 650 760 Apr. 2015 May 2015 Jun. 2015 Jul. 2015 900 500 400 750 550 700 950 710 Aug. 2015 Sep. 2015 Oct. 2015 800 1,000 600 660 550 Nov. 2015 960 800 Dec. 2015 600 600