My My Monroe Course Content xEssaybot: Free Es X New Tab books/9791119234173/cfi/6/30!/4/18/6/2/2@0:100 2-20 Scattergraph; high-low method; cost estimation (LO 2) The Aust Corporation has gather copy machine costs for the first eight months of the year. Month Number of Copies January February35,000 Total Copy Cost 40,000 $3,500 $3,200 $4,100 March 60,000 80,000 85,000 April $5,100 $5,600 May June July August 75,000 $4,800 82,000 105,000 $6,000 Required a. Prepare a scattergrap h of the cost information and then choose a line that you believe best represents the cost functio Represent your chosen line with a cost equation of the form g mx + b. Show your calculati b. Using the high-low method, what is the variable cost per copy? c. Using the high-low method, what is the fixed cost per month? d. Using the high-low method, represent the cost function with a cost equation of the formy me+b e. Using your cost equation from part (d), provide your best estimate of the copy costs for September if So,o00 copies will be made. Why does your estimate differ from the $5,100 cost incurred in April? 2-21 High-low method; cost estimation (CMA adapted) (LO 2) Angie March owns a catering company that stages nquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer from the pas a months and d holidays and light demand at other times. Angie has gathered the following cost information My My Monroe Course Content xEssaybot: Free Es X New Tab books/9791119234173/cfi/6/30!/4/18/6/2/2@0:100 2-20 Scattergraph; high-low method; cost estimation (LO 2) The Aust Corporation has gather copy machine costs for the first eight months of the year. Month Number of Copies January February35,000 Total Copy Cost 40,000 $3,500 $3,200 $4,100 March 60,000 80,000 85,000 April $5,100 $5,600 May June July August 75,000 $4,800 82,000 105,000 $6,000 Required a. Prepare a scattergrap h of the cost information and then choose a line that you believe best represents the cost functio Represent your chosen line with a cost equation of the form g mx + b. Show your calculati b. Using the high-low method, what is the variable cost per copy? c. Using the high-low method, what is the fixed cost per month? d. Using the high-low method, represent the cost function with a cost equation of the formy me+b e. Using your cost equation from part (d), provide your best estimate of the copy costs for September if So,o00 copies will be made. Why does your estimate differ from the $5,100 cost incurred in April? 2-21 High-low method; cost estimation (CMA adapted) (LO 2) Angie March owns a catering company that stages nquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer from the pas a months and d holidays and light demand at other times. Angie has gathered the following cost information
