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Attacedh are two questions that I really have no clue what to do. Thank you in advance for helping me out!! 10-20 Account analysis, high-low
Attacedh are two questions that I really have no clue what to do. Thank you in advance for helping me out!!
10-20 Account analysis, high-low Luwak Coffees wants to find an equation to estimate monthly utility costs. Luwak has been in business for one year and has collected the following cost data for utilities: Required: 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly utility cost function for Java Joe's. 4. Next month, Luwak expects to use 4,400 kilowatt hours of electricity, make 3,000 minutes of telephone calls, and use 64,000 gallons of water. Estimate total cost of utilities for the month. 10-23 Estimating a cost function, high-low method. Laurie Daley is examining customer-service costs in the southern region of Capitol Products. Capitol 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: Required: 1. Plot the relationship between customer-service costs and number of service reports. Is the relationship economically plausible? 2. Use the high-low method to compute the cost function, relating customer-service costs to the number of service reports. 3. What variables, in addition to number of service reports, might be cost drivers of weekly customer-service costs of Capitol ProductsStep by Step Solution
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