Question: QUESTION 24 The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month

QUESTION 24

  1. The 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?

  • Y = $0.1667X
  • Y = $4,000 + $0.1667X
  • Y = $5,000 + $6X
  • Y = $6X

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