Draw a scatter diagram and explain the correlation

Reference no: EM13789771

Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months:

Month Pints of Applesauce Produced Energy Cost

January 35,000 $23,400

February 21,000 22,100

March 22,000 22,000

April 24,000 22,450

May 30,000 22,900

June 32,000 23,350

July 40,000 28,000

August 30,000 22,800

September 30,000 23,000

October 28,000 22,700

November 41,000 24,100

December 39,000 24,950

Required:

1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form.

2. Predict the energy cost for a month in which 24,500 pints of applesauce are produced.

3. Draw a scatter diagram and explain the correlation, if exist, between the production of a pint of apple sauce and the energy cost.

Reference no: EM13789771

Questions Cloud

The sales are anticipated to be within overseas markets : Assignment Description: Business Ethics and the Global Dimension of Business The Board of Directors for ABC Complete Kitchens, Inc. is very concerned about the international management aspects for the plant since nearly 20% of the sales are anticipat..

Discuss relationship between theory and personal experience : Describe the various goals of a theory. Discuss the relationship between theory and personal experience. Identify and define the five canons of rhetoric. Give an example to illustrate each one.

Good and bad aspects of relying on precedent : What are the good and bad aspects of relying on precedent to decide current cases? Give an example of precedent that either was not followed in the past, or should not be followed in the future

The prescriptions for project initiation set forth : Reflect on a project in which you recently participated, either school-related or in a past job or community organization. Describe the extent to which this project followed, or did not follow, the prescriptions for project initiation set forth in th..

Draw a scatter diagram and explain the correlation : Use the high-low method to estimate the company's energy cost behavior and express it in equation form and predict the energy cost for a month in which 24,500 pints of applesauce are produced.

Assignment on drug treatment for adhd : Drug Treatment for ADHD

Importance of staying abreast of new laws : The importance of staying abreast of new laws created by legislation on the state and/or federal level and the evolution of community policing and how it may assist in crime detection or protection·

Research issues in physical sciences : Take a position as to whether or not global warming is taking place. Provide three (3) lines of evidence to support your position.

What did you think about the claim : What did you think about the claim then? What do you think about it now after reading this chapter?

User Account

All Pages