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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The Salinas Corporation has gathered the following data on its copy machine costs for the first eight months of the year.
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Required
| (a) | Prepare a scattergraph of the cost information and then choose a line that you believe best represents the cost function. Represent your chosen line with a cost equation of the form . Show your calculations. |
| (b) | Using the high-low method, what is the variable cost per copy? |
| (c) | Using the high-low method, what is the fixed cost per month? |
| (d) | Using the high-low method, represent the cost function with a cost equation of the form . |
| (e) | Using your cost equation from part (d), provide your best estimate of the copy costs for September if 70,000 copies will be made. Why does your estimate differ from the $7,000 cost incurred in March? |
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