Question: Please help! Part 2. Scatter-graph Method Scatter-graph Method. Refer to the date in the previous exercise for the city of Rockville. 1. Use the scatter-graph

Please help!

Part 2. Scatter-graph Method

Scatter-graph Method. Refer to the date in the previous exercise for the city of Rockville.

1. Use the scatter-graph method to estimate total fixed costs per year and the variable cost per mile. State your results in the cost equation form Y = f + vX by filling in the dollar amounts for f and v.

2. What would the estimated costs be if the trucks drove 500,000 miles in year 7?

Reporting Period (Year) Total Costs Level of Activity (Miles Driven)
Year 1 $ 750,000 225,000
Year 2 850,000 240,000
Year 3 1,100,000 430,000
Year 4 1,150,000 454,000
Year 5 1,250,000 560,000
Year 6 1,550,000 710,000

Please Help me solve this problem using the scatter-graph method NOT the high low method.

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