Using the high-low method, determine the cost function for each cost.

Write your answer in the form y = a + bX, using only values that are relevant.

a) What is the Assembly cost function?

b) What is the Health insurance cost function?

c) What is the Delivery cost function?

d) Using the preceding information relating to the Bethany Corporation, estimate the total operating cost for the next month, assuming Bethany Corporation expects to use 97 labour hours, have 45 employees and deliver 490 units.

The Bethany Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2020. The following cost and other data were gathered for 2018: Month Assembly costsLabour hours Health insuranceNumber of employees Delivery costs Units delivered January 1420 5 200 44 000 550 February 1520 5 200 34 400 430 March 1200 5 200 33 600 April 5 200 32 000 400 May 1560 5 200 36 800 460 June 1960 5 200 46 400 580 July 2100 5 200 49 600 620 August 2000 5 200 51 200 640 September1 780 5 200 47 200 590 October 1300 5 200 32 800 410 November 1 380 5 200 30 400 380 December 1 680 5 200 35 200 440