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Thanks for helping Regards Solar Limited wants to find an equation to estimate some of their monthly operating costs for the coming year. The following
Thanks for helping
Regards
Solar Limited wants to find an equation to estimate some of their monthly operating costs for the coming year. The following cost and other data were gathered for the previous 12 months: Month January February March April May June July August September October November December Maintenance costs $4,500 $4,452 $4,600 $4,850 $5,166 $4,760 $4,910 $4,960 $5,070 $5,250 $5,271 $4,760 Machine- hours 165 120 230 318 460 280 340 360 420 495 510 275 Health Number of Shipping insurance employees costs $8,600 68 $25,776 $8,600 75 $29,664 $8,600 92 $28,674 $8,600 105 $23,058 $8,600 89 $21,294 $8,600 87 $33,282 $8,600 93 $31,428 $8.600 88 $30,294 $8,600 95 $25,110 $8,600 102 $25,866 $8,600 97 $20,124 $8,600 94 $34,596 Units shipped 7,160 8,240 7,965 6,405 5,915 9,245 8,730 8,415 6,975 7,185 5,590 9,610 Required a) Which of the above costs is variable? Fixed? Mixed? Explain. (1 marks, suggested time approx. 4 minutes) b) Using the high-low method, determine the cost function for each cost. (2 marks - suggested time approx. 7 minutes) c) Next month, Solar Limited expects to use 400 machine-hours, have 80 employees and ship 9000 units. Estimate total operating cost for the monthStep by Step Solution
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