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MaeveMaeve BakerBaker is the new manager of the materials storeroom for ParrParr Manufacturing. MaeveMaeve has been asked to estimate future monthly purchase costs for part

MaeveMaeve

BakerBaker

is the new manager of the materials storeroom for

ParrParr

Manufacturing.

MaeveMaeve

has been asked to estimate future monthly purchase costs for part #696, used in two of

ParrParr's

products.

MaeveMaeve

has purchase cost and quantity data for the past 9 months as follows:

Month

Cost of Purchase

Quantity Purchased

January

$12,687

2,660 parts

February

12,990

2,810

March

17,763

4,153

April

16,011

3,724

May

13,094

3,001

June

13,814

3,387

July

15,322

3,622

August

10,251

2,275

September

14,930

3,502

Estimated monthly purchases for this part based on expected demand of the two products for the rest of the year are as follows:

Month

Purchase Quantity Expected

October

3,390 parts

November

3,720

December

3,010

Requirement 1. The computer in

MaeveMaeve's

office is down, and

MaeveMaeve

has been asked to immediately provide an equation to estimate the future purchase cost for part #696.

MaeveMaeve

grabs a calculator and uses thehigh-low method to estimate a cost equation. What equation does she get?

=

+ (

)

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