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The controller of the Petal Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance:
The controller of the Petal Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Requirements 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. 3. How might a manager use the cost function above? Requirement 1. Estimate the cost function for maintenance. (Enter amounts to the nearest cent.) Maintenance costs = + ( . Data table Month Machine-Hours Maintenance Costs Incurred January 10,000 $ 4,100 February 15,000 5,800 Print Done
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