Question: TASK 1 - Estimate Linear Cost Function using High-Low Method An examination of monthly production and cost data over a period of several months for
TASK 1 - Estimate Linear Cost Function using High-Low Method
An examination of monthly production and cost data over a period of several months for Beelight Electronics reveals the following production figures:
| Month | Total Utility Costs | Total Units Produced |
| January | $215,000 | 120,000 |
| February | $150,000 | 75,000 |
| March | $200,000 | 110,000 |
| April | $270,000 | 150,000 |
| May | $170,000 | 90,000 |
| June | $250,000 | 140,000 |
| July | $225,000 | 130,000 |
| August | $195,000 | 100,000 |
| September | $200,000 | 110,000 |
| October | $180,000 | 95,000 |
please do the 3 questions
Required:
- It is estimated that 145,000 units will be produced next month. Develop a worksheet that can be used to calculate the variable cost per unit and total fixed cost using the high-low method.
- Use this estimate to calculate the anticipated cost of utilities for producing next month's output.
- From the data provided, create an XY chart on a separate worksheet and plot all of the given points, using Units produced as the X-axis and Utility costs as the Y-axis (series 1)
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