Question
Toowoomba solar limited wants to find an equation to estimate some of their monthly operating costs for the coming year. The following cost and other
Toowoomba 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 | Maintenance | Machine-hours | Health insurance | Number of employees | Shipping costs | Units shipped |
January | 2250 | 1656 | 4300 | 68 | 12888 | 1432 |
February | 2226 | 120 | 4300 | 75 | 14832 | 1648 |
March | 2300 | 230 | 4300 | 92 | 14337 | 1593 |
April | 2425 | 318 | 4300 | 105 | 11529 | 1281 |
May | 2583 | 460 | 4300 | 89 | 10647 | 1183 |
June | 2380 | 280 | 4300 | 87 | 16641 | 1849 |
July | 2455 | 340 | 4300 | 93 | 15714 | 1746 |
August | 2480 | 360 | 4300 | 88 | 15147 | 1683 |
September | 2535 | 420 | 4300 | 95 | 12555 | 1395 |
October | 2625 | 495 | 4300 | 102 | 12933 | 1437 |
November | 2655 | 510 | 4300 | 97 | 10062 | 1118 |
December | 2380 | 275 | 4300 | 94 | 17298 | 1922 |
- Which of the above costs is variable? Fixed? Mixed? Explain.
- Using the high-low method, determine the cost function for mixed cost.
- Combine the information above to get a monthly utility cost function for TSL.
- Next month, TSL expects to use 400 machine-hours, have 80employees and ship 2000 units. Estimate total operating cost for the month.
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