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.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
