Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours:

Month	Maintenance Costs	Machine Hours
1	$ 2,780	1,870
2	2,940	1,950
3	3,090	2,030
4	3,200	2,050
5	3,280	2,080
6	3,250	2,060
7	3,190	2,040
8	3,030	2,020
9	2,800	1,880
10	2,400	1,280
11	2,410	1,480
12	2,630	1,770

Required:

1. What is the cost equation for maintenance costs using the high-low method?

2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.

• Required 1
• Required 2

What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit variable cost)" to 2 decimal places. Include outliers in your calculations.)

Maintenance costs

=

$992selected answer correct

+

(

$1.10selected answer correct

x

M = Machine Hoursselected answer correct

)

• Required 1
• Required 2

• Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Input your final answer as a percentage rounded to 1 decimal place (i.e., 0.054 = 5.4%). Include any outliers in your calculations.)

  Mean absolute percentage error (MAPE)

  %