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Home Q & A Board Other Fields Homework Help Business Accounting
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mariasmakatof mariasmakatof
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A year ago
The Melina Corporation has gathered the following data on its copy machine costs for the first eight months of the year.

MonthNumber of CopiesTotal Copy Cost
January60,000$ 7,400
February50,0006,500
March70,000 7,000
April90,000 9,200
May80,000 7,600
June100,000 8,500
July120,00010,000
August110,000 9,800

Required:

Use 5 decimals on 'per unit' amounts.
a.Prepare a scattergraph of the cost information and then choose a line that you believe
best represents the cost function. Represent your line with a cost equation of the form,
y = mx + b. 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 in the form, y = mx + b.
e.Using your cost equation from part (d), provide your best estimate of the copy costs
for
September if 68,000 copies will be made. Why does your estimate differ from the
$7,000 cost incurred in March, when 70,000 copies were made rather than 68,000?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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amandashimkusamandashimkus
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A year ago
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mariasmakatof Author
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Helped a lot
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this is exactly what I needed
hmonier
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This calls for a celebration Person Raising Both Hands in Celebration
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