=+Estimated monthly purchases for this part based on expected demand of the two products for the rest

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=+Estimated monthly purchases for this part based on expected demand of the two products for the rest of the year are:

Month Purchase quantity expected October 2800 parts November 3100 December 2500 Required 1 The computer in Pat’s office is down and Pat has been asked to provide immediately an equation to estimate the future purchase cost for part no. 4599. Pat grabs a calculator and uses the high–low method to estimate a cost equation. What equation does Pat get?

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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