Smith Glass Co. produces industrial glass. Smith forecasts inspection costs using the high-low method and has compiled
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Smith Glass Co. produces industrial glass. Smith forecasts inspection costs using the high-low method and has compiled the following data from prior results:
Looking solely at the data in the table, which two years should Smith select for the high-low method of analysis? Would you consider using different points and why?
Transcribed Image Text:
2018 2019 2020 2021 2022 Total operating hours Inspection costs ($) 3,586 43,649 5,683 3,197 4,105 5,056 50,457 46,835 53,227 49,734
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ANSWER The two years Smith should select for the highlow method of analysis are 2019 and 2021 These two years represent the lowest and highest inspect...View the full answer
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