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Unit Cost in 2 0 1 3 = ( Q . 5 ) Laurie Daley is examining customer - service costs in the southern region

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(Q.5) Laurie Daley is examining customer-service costs in the southern region of Capitol Products. Capitol Products has more than 200 separate electrical products that are sold with a six-month guarantee of full repair or replacement with a new product. When a product is returned by a customer, a service report is prepared. This service report includes details of the problem and the time and cost of resolving the problem. Weekly data for the most recent 8-week period are as follows:
Week ?() Customer-Service Department Costs Number of Service Reports
1
2
3
4
5
6
7
8
$13,700
190
20,900
275
13,000
115
18,800
395
14,000
265
21,500
455
16,900
340
21,000
305
Questions:
Plot the relationship between customer-service costs and number of service reports. Is the relationship economically plausible (reasonable, acceptable)?
Using the high-low method compute cost function, relating customer-service costs to the number of service reports Calculate slope coefficient:
Calculate intercept (constant):
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