Question
The Browne's Town housing Scheme operates a Laundromat, solely for the purpose of providing laundering services to Tenants in residence. You have been hired as
The Browne's Town housing Scheme operates a Laundromat, solely for the purpose of providing laundering services to Tenants in residence. You have been hired as an accountant , to analyze the cost of the laundering services. The Housing administration has assembled the data for a twelve month period pertaining to the monthly total costs of providing the service and the corresponding number of Tenants who used the laundering facilities each month. The table below shows the monthly data collected over the academic year under review.
Month | Total Laundering Costs | # of Tenants Laundering |
August | 188000 | 1200 |
September | 213100 | 1650 |
October | 232000 | 2000 |
November | 248200 | 2300 |
December | 261700 | 2550 |
January | 269800 | 2700 |
February | 242800 | 2200 |
March | 250900 | 2350 |
April | 253600 | 2400 |
May | 226600 | 1900 |
June | 169900 | 850 |
July | 161800 | 700 |
a) Determine the variable cost per student and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) In August of the upcoming academic year, the university expects the number of Tenants using the Laundromat to increase to 3,400. What is the expected total laundering cost for August? d) From the data set given, generate the scatter diagram for Browne's Town Housing Scheme, clearly showing the line of best fit (trend line). e) Using the trend line, determine Browne Town's Housing Scheme fixed cost per month and the variable cost per student. (Use 0 & 2,500 students.) f) Based on the scatter gram, what is the equation of the total mixed cost function? g) Which of the two methods would be more appropriate? Explain your answer.
Please Note: I need the Answers to E,F and G done by the same person who previously did the answers to A,B,C and D.
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