Shown below are 15 data points relating to the Receiving cost and tons of material for Acme Manufacturing Receiving Tons of

Observation Cost Material

1 $67,100 47,300

2 75,200 68,200

3 92,200 93,500

4 88,600 79,200

5 87,700 96,800

6 80,200 49,500

7 98,000 73,700

8 67,600 40,700

9 68,500 46,200

10 78,500 63,800

11 71,700 50,600

12 80,300 48,400

13 78,000 55,000

14 80,000 69,300

15 93,800 53,900

Required: a. Using the High-Low method, determine the cost equation for receiving costs. (4 pts)

b. Use the equation in part a. to estimate receiving costs when the tons of material are estimated to be 65,000. (3 pts)