The controller of the ljiri Company wants you to estimate

The controller of the ljiri Company wants you to estimate a cost function form the following two observations in a general ledger account called Maintenance.


Machine-Hours Maintenance Costs Incurred Month January 6,000 S4,000 February 5,400 10,000

1. Estimate the cost function for maintenance.

2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month?Explain.

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