=+3-28 KK High–low method, regression analysis OBJECTIVES 4, 5 Pat Wilson is the new manager of the materials storeroom for Perth Manufacturing. Pat has been asked to estimate future monthly purchase costs for part no. 4599, used in two of Perth Manufacturing’s products. Pat has cost of purchase and quantity data for the past nine months as follows:

Chapter 3: Determining how costs behave 117 M03_HORN3377_02_LT_C03.indd 117 2/09/13 3:20 PM Month Cost of purchase Quantity purchased January $10 390 2 250 parts February 10 550 2 350 March 14 400 3 390 April 13 180 3 120 May 10 970 2 490 June 11 580 2 680 July 12 690 3 030 August 8 560 1 930 September 12 450 2 960