Question
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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