Kemp Supply Company make a marketing budget. One of the analyzes to be carried out is that the cost of travel that associated with the activity value of the order received. The available data for 12 months are

Month Orders Received Travel Expense

1 $53,000 $ 3,000

2 65,000 3,200

3 48,000 2,800

4 73,000 3,400

5 62,000 3,100

6 67,000 3,200

7 60,000 2,900

8 76,000 3,300

9 82,000 3,500

10 62,000 3,400

11 64,000 3,200

12 80,000 3,400

Required:

1) use the high-low method and least-square method to compute the cost function, relating customer-service costs to the number of services reports!

2) Plot the relationship between order received costs and travel expense reports. is the relationship economically plausible?