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Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for
Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Month January Pints of Applesauce Produced Energy Cost 122,000 $71,900 February 80,000 63,200 March 83,000 69,400 April 89,000 69,900 May 107,000 70,400 June 113,000 70,900 July 137,000 71,600 August 107,000 70,100 September 107,000 70,700 October 101,000 69,800 November 140,000 74,000 December 134,000 72,050 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 91,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Predict the energy cost for a month in which 91,000 pints of applesauce are produced. Energy cost < Required 1 Required 2 > Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Month January Pints of Applesauce Produced Energy Cost 122,000 $71,900 February 80,000 63,200 March 83,000 69,400 April 89,000 69,900 May 107,000 70,400 June 113,000 70,900 July 137,000 71,600 August 107,000 70,100 September 107,000 70,700 October 101,000 69,800 November 140,000 74,000 December 134,000 72,050 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y= a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 91,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bx, where Y denotes energy cost for a month and X denotes pints of applesauce produced. (Round coefficient of X to 2 decimal places.) Total energy cost =
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