Course Solutions Uncategorized (Solved) : Manager Hualaishi Restaurant Found Operating Costs Increased Production Volume Costs Last Q32858892 . . . .

(Solved) : Manager Hualaishi Restaurant Found Operating Costs Increased Production Volume Costs Last Q32858892 . . . .

 

The manager of hualaishi restaurant found that the operatingcosts is increased with the production volume. The costs for thelast six months have been as follows:

Requirement:(a) With the high-low method to seek a cost equation.(b) Calculate the costs that should be expected in month sevenwhen output is expected to be 70, 000 units.(c) Draw a scatter graph (with the horizontal axis representsthe production volume, the vertical axis represents the cost).Observation of scatter graph, point out whether is a linearrelationship between the cost and the production volume.
Month Production volume cost 40,000 50,000 60, 000 62, 500 80, 000 75,000 £ 100, 000 110, 000 125, 000 4 130,000 150, 000 150,100Month

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