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CASE STUDY The Rexburg Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.
CASE STUDY The Rexburg Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Rexburg has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month January February March April May June Cost $37,100 35,600 33,380 35,100 67,100 42,100 Hours 3,500 2,900 3,200 3,400 6,050 4,150 Please answer each question clearly, and give your good assumption. a. What is the slope coefficient? b. What is the constant for the estimated cost equation? c. What is the estimated cost function for the above data? d. What is the estimated total cost at an operating level of 3,200 hours?
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