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I need help with this question please Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned
I need help with this question please
Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firm's profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow: Month 1 2 3 4 5 6 7 8 9 10 11 12 Maintenance costs $ 2,669 2,814 2,864 2,964 2,999 3,30 3,009 3,049 2,924 2,714 2,734 3,034 Machine Hours 1,521 1,612 1,627 1,677 1,797 1,902 1,807 1,827 1,717 1,432 1,572 1,447 as 40 Required: 1. Use the high-low method to estimate the fixed and variable portions for maintenance costs. (In your calculations, round "slope (unit variable cost)" to 4 decimal places. Enter the "slope (unit variable cost)" rounded to 4 decimal places and all other calculations, to nearest whole dollar.) rep Model he hig utlier, Month 1 2 3 4 5 6 2 8 9 13 11 12 Maintenance costs $ 2,669 2,814 2,864 2,964 2,999 3,030 3,009 3,049 2,924 2,714 2,734 3,034 Machine Hours 1,521 1,612 1,627 1,677 1,797 1.902 1,807 1,827 1,717 1,432 1,572 1,447 Required: 1. Use the high low method to estimate the fixed and variable portions for maintenance costs. (In your calculations, round "slope (unit variable cost)" to 4 decimal places. Enter the "slope (unit variable cost)" rounded to 4 decimal places and all other calculations, to nearest whole dollar.) Mintonance cost 2. Graph the data points to check for possible outliers and determine whether the points selected in requirement 1 are representati of the data. (Click each month and then click the graph to bring up the data coordinates. Enter the exact coordinates for each month.) MAINTENANCE COSTS $3,100 Tools 5th Month 6th Month $3,000 . $2,900 7th Month gth Month . . $2,800 9th Month 10th Month $2,700 . 11th Month 12th Month $2,600 $2,500 0 500 1000 1500 2000 $3,000 7th Month $2,900 8th Month $2,800 9th Month 10th Month $2,700 . 11th Month 12th Month $2,600 $2,500 0 500 1000 1500 2000 MACHINE HOURS 3. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Input your final onswer as a percentage rounded to 1 decimal ploce (i.e., .054 = 5.4%).) Moan absoluto percentage ofror (MAPE) Step by Step Solution
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