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b) Best Juice is a healthy juice franchise chain located in several stores in NSW, Australia. The hours of operation and electricity costs for one
b) Best Juice is a healthy juice franchise chain located in several stores in NSW, Australia. The hours of operation and electricity costs for one of the company's new stores which opened in the past 6 months were as follows: Required: i) Using the high-low method, determine the cost formula that expresses the cost behaviour of the company's electricity costs. (2.5 marks) ii) Can the High-Low method be relied upon in an unstable business environment? Explain. (1.5 marks) b) Best Juice is a healthy juice franchise chain located in several stores in NSW, Australia. The hours of operation and electricity costs for one of the company's new stores which opened in the past 6 months were as follows: Required: i) Using the high-low method, determine the cost formula that expresses the cost behaviour of the company's electricity costs. (2.5 marks) ii) Can the High-Low method be relied upon in an unstable business environment? Explain. (1.5 marks)
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