Question Four (10 Points):

First:The following information is available regarding the total repair costs of Alexander Design Company for six months of 2018: Units Produced Repair Cost January 1,500 $15,875 February 1,750 $16,500 March 1,000 $11,250 April 1,250 $15,250 May 1,875 $17,750 June 2,250 $20,250

Required: Using the high-low method, compute the following:

(1) Calculate the cost function

(2) Use the cost relationship determined in required (1) to estimate the total repair cost for July 2018, given that production is scheduled for 2,300 units.

(3) What is the difference between using the High - low method and Least Square (Regression) method.

Question Four 110 Points): First'he following information is available regarding the total repair costs of Alexander Design Compan for six months of 2018: Units Repair Produced Cost anuary 1,500 $15,875 rule I ,250 $20,250 Reguired: Using the high-low method, compute the following: {1) Calculate the cost function {2) Use the cost relationship determined in required {1) to estimate the total repair cost for July 2018., given that production is scheduled for 2,300 units. {3) What is the difference between using the High low method and Least Square (Regression) method