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L03, 4 BIS-19. Scatter Diagrams and High-Low Cost Estimation ViSion (LUX) Assume the local Pearle Vision has the following information on the number of sales
L03, 4 BIS-19. Scatter Diagrams and High-Low Cost Estimation ViSion (LUX) Assume the local Pearle Vision has the following information on the number of sales orders received and orderprocessing costs. an\"? \"'00; I' Month Sales Orders Order-Processing Costs I 1 ................................... 3,300 $ 90,970 2 ................................... 1,650 55,412 3 ................................... 4,840 1 32,770 4 ................................... 3,080 90,090 5 ................................... 2,530 76,752 6 ................................... 1,320 47,410 7 ................................... 2,200 63,750 Required 0. Use information from the high and lowvolume months to develop a costestimating equation for monthly orderprocessing costs. b. Plot the data on a scatter diagram. Using the information from representative high and lowvolume months, develop a costestimating equation for monthly production costs. 6. What factors might have caused the difference in the equations developed for requirements (a) and (b)
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