Question
I) A Company has collected the following data. The company wanted to use high-low method for measuring cost functions. Month Cost Hours January $10,000 700
I) A Company has collected the following data. The company wanted to use high-low method for measuring cost functions. Month Cost Hours January $10,000 700 February 24,400 2,000 March 31,280 2,450 April 36,400 3,000 May 43,000 4000 June 42,400 3,740 Determine the cost function: show your work Q2) A company is considering three possible locations (Amman, Irbid, and Aqaba) for its manufacturing facility. Produced units are to be sold for 350 JD/ unit. Based on the information listed below answer the following questions. Variable Marketing and Annual fixed cost manufacturing cost per distribution cost per unit Variable Location Amman Costs (JD) unit (JD) (JD) 15,000,000 85 35 Irbid 10,400,000 65 25 Aqaba 12,400,000 92 14 Given that the expected demand is 165,000 unit/ year, what is the expected operating income for each location. Show your work
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