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
1		3,000	$ 49,620
2		1,500	30,225
3		4,400	72,420
4		2,800	49,140
5		2,300	41,865
6		1,200	25,860
7		2,000	37,500

Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs.

(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:

Month	Sales Orders	Order-Processing Costs
1	3,000	$ 82,700
2	1,500	50,375
3	4,400	120,700
4	2,800	81,900
5	2,300	69,775
6	1,200	43,100
7	2,000	62,500