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10-28 Estimating a cost function, high-low method. Lacy Dallas is examining customer-service costs in the southern region of Camilla Products. Camilla Products has more than
10-28 Estimating a cost function, high-low method. Lacy Dallas is examining customer-service costs in the southern region of Camilla Products. Camilla Products has more than 200 separate electrical products that are sold with a 6-month guarantee of full repair or replacement with a new product. When a product is returned by a customer, a service report is prepared. This service report includes details of the problem and the time and cost of resolving the problem. Weekly data for the most recent 8-week period are as follows Customer-Service Department Costs $13,300 20,500 12,000 18,500 14,900 21,600 16,500 21,300 Number of Service Reports 185 285 120 360 275 440 350 315 Week 1. Plot the relationship between customer-service costs and number of service reports. Is the relationship economically plausible
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