SOLUTION NEEDED

Using Regression Results to Construct and Apply a Cost Formula Dohini Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders.

Month		Purchasing Cost		Number of Purchase
				Orders
January		$18,860		370
February		18,065		330
March		19,250		370
April		18,050		410
May		19,345		400
June		19,500		450
July		19,670		460
August		20,940		560
September		19,430		440
October		20,020		500
November		18,800		470
December		19,340		480

Required:

1. Determine the high point and the low point

2. calculate the variable rate for purchasing cost based on the number of purchase orders. (Round to the nearest cent)

3. Calculate the fixed monthly cost of purchasing. (round to the nearest dollar)

4. Write the cost formula for the purchasing activity showing the fixed cost and the variable rate.

5. if Dohini manufacturing company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? ) round to the nearest dollar)

6. WHAT IF Dohini manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders?

a. What will the estimated total purchasing cost be?

b. What is the total fixed purchasing orders?

c. why does not it equal the fixed cost calculated in requirement 3? (round to the nearest dollar)