Question
The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Cost of
The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:
| Month | Cost of Electricity (Y) | Direct Labor-Hours (X) |
| January | $14,000 | 1,500 |
| April | $15,000 | 1,700 |
| July | $17,000 | 2,000 |
| October | $14,500 | 1,600 |
What would be the best equation using the high-low method?
| Y = $4,000 + $7X | ||
| Y = $0 + $9X | ||
| Y = $1,000 + $8X | ||
| Y = $5,000 + $6X |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Effective Internal Auditing
Authors: Manuel E. Peña-Rodríguez
1st Edition
1736742922, 978-1736742921
