Question
Lukes assembled monthly production data for Bubbs showing the month, the number of cases produced, and the total production cost. Month Cases Cost 1 195,300
Lukes assembled monthly production data for Bubbs showing the month, the number of cases produced, and the total production cost.
Month | Cases | Cost |
1 | 195,300 | $1,570,196 |
2 | 191,900 | $1,568,046 |
3 | 173,400 | $1,494,044 |
4 | 195,800 | $1,592,674 |
5 | 173,200 | $1,482,400 |
6 | 179,900 | $1,545,196 |
7 | 190,100 | $1,557,890 |
8 | 172,900 | $1,501,446 |
9 | 209,600 | $1,631,190 |
10 | 201,800 | $1,593,149 |
11 | 184,000 | $1,425,441 |
12 | 199,300 | $1,626,864 |
Apply the high low method to estimate the variable cost per case and monthly fixed costs based on the data in the table. Use your results to predict the total cost for a month with production of 194,000 cases.
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