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Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.
| Month | Cost(Y) | Hours(H) | |
| January | $ | 8,350 | 365 |
| February | $ | 10,000 | 800 |
| March | $ | 8,240 | 480 |
| April | $ | 8,360 | 400 |
| May | $ | 10,510 | 1,085 |
| June | $ | 9,750 | 775 |
How should the cost function be properly stated using the high-low method?
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