Question B.

Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order- processing costs Month Sales Orders Order-Processing Costs $49,620 30,225 72,420 49,140 41,865 25,860 37,500 3,000 1,500 4,400 2,800 2,300 1,200 2,000 4 5 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs 8,400 + $ 455X (b.) Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram: Scatter_Diagram Check