Shannon Corporation wants to find an equation to estimate some of their monthly operating costs for...

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Shannon Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: (Click the icon to view the cost and other data) Read the requirements. Cost Maintenance Health insurance Shipping costs Maintenance Requirement 2. Using the high-low method, determine the cost function for each cost. Begin by selecting the general formula that represents the linear cost function for each cost. y = a +bX y = a y = bx Health insurance Shipping costs function Mixed Fixed Variable Maintenance Health insurance Shipping costs Now determine the cost function for each cost. (Enter all values in the same format as the general linear formula. If a box is not used in the equation, leave the box empty; do not enter a zero or select a label.) Cost function Explanation The cost neither remains constant in total nor remains constant per unit. Although the cost driver varies from month to month, the total cost remains constant. The cost per unit remains constant each month. y= y= y = + D + + Shanno BEE (Cli Read th Cost Mainten Health i Shipping Require Begin by Mainten Health i Shipping Now de select a Cost fu Mainten Health i Shippin Data table Month January February March April May June July August September October November December $ $ $ $ $ $ $ $ $ $ $ $ Machine Health Number of Shipping Units Insurance Employees Costs Shipped 7,090 8,280 4,520 Hours 161 $ 125 $ 60 73 93 7,940 108 6,400 4,375 4,665 234 $ 4,870 305 $ 5,124 462 $ 4,746 279 $ 4,944 335 $ 90 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 80 95 81 101 4,932 355 $ 5,044 416 $ 5,226 473 $ 5,244 520 $ 110 92 100 4,723 280 $ 8,620 Maintenance Costs Print Done $ 24,106 $ 28,152 $ $ 26,996 21,760 $ 20,060 $ $ 31,518 29,478 $ 28,662 8,430 $ 23,086 6,790 $ 24,174 7,110 $ 19,074 5,610 $ 32,980 9,700 5,900 9,270 8,670 - х ng cost and other data were gathered for 2017: ation, leave the box empty; do not enter a zero or Requirements 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Shannon Corporation. 4. Next month, Shannon expects to use 360 machine hours, have 110 employees, and ship 9,900 units. Estimate the total operating cost for the month. Print - Done X Shannon Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: (Click the icon to view the cost and other data) Read the requirements. Cost Maintenance Health insurance Shipping costs Maintenance Requirement 2. Using the high-low method, determine the cost function for each cost. Begin by selecting the general formula that represents the linear cost function for each cost. y = a +bX y = a y = bx Health insurance Shipping costs function Mixed Fixed Variable Maintenance Health insurance Shipping costs Now determine the cost function for each cost. (Enter all values in the same format as the general linear formula. If a box is not used in the equation, leave the box empty; do not enter a zero or select a label.) Cost function Explanation The cost neither remains constant in total nor remains constant per unit. Although the cost driver varies from month to month, the total cost remains constant. The cost per unit remains constant each month. y= y= y = + D + + Shanno BEE (Cli Read th Cost Mainten Health i Shipping Require Begin by Mainten Health i Shipping Now de select a Cost fu Mainten Health i Shippin Data table Month January February March April May June July August September October November December $ $ $ $ $ $ $ $ $ $ $ $ Machine Health Number of Shipping Units Insurance Employees Costs Shipped 7,090 8,280 4,520 Hours 161 $ 125 $ 60 73 93 7,940 108 6,400 4,375 4,665 234 $ 4,870 305 $ 5,124 462 $ 4,746 279 $ 4,944 335 $ 90 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 8,620 80 95 81 101 4,932 355 $ 5,044 416 $ 5,226 473 $ 5,244 520 $ 110 92 100 4,723 280 $ 8,620 Maintenance Costs Print Done $ 24,106 $ 28,152 $ $ 26,996 21,760 $ 20,060 $ $ 31,518 29,478 $ 28,662 8,430 $ 23,086 6,790 $ 24,174 7,110 $ 19,074 5,610 $ 32,980 9,700 5,900 9,270 8,670 - х ng cost and other data were gathered for 2017: ation, leave the box empty; do not enter a zero or Requirements 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Shannon Corporation. 4. Next month, Shannon expects to use 360 machine hours, have 110 employees, and ship 9,900 units. Estimate the total operating cost for the month. Print - Done X

Answer rating: 100% (QA)

1 Based on the given information the types of costs can be categorized as follows Maintenance costs Mixed Neither constant in total nor constant per u... View the full answer