• PureWater Bottling is analyzing its production costs related to the number of bottles produced.
• Data Overview:
  • Quarter 1: Total Costs: $200,000, Bottles Produced: 1,000,000
  • Quarter 4: Total Costs: $250,000, Bottles Produced: 1,250,000
• Required Analysis:
  • Use the High-Low Method to determine the variable cost per bottle and fixed costs.
  • Develop a cost equation.
  • Estimate the total costs for producing 1,500,000 bottles.

Discuss strategies for improving production efficiency and reducing costs