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Question - The following information is available regarding the total repair costs of Alexander Design Company for six months of 2018:
Units Produced
Repair Cost
January
1,500
$15,875
February
1,750
$16,500
March
1,000
$11,250
April
1,250
$15,250
May
1,875
$17,750
June
2,250
$20,250
Required - Using the high-low method, compute the following:
(1) Calculate the cost function.
(2) Use the cost relationship determined in required (1) to estimate the total repair cost for July 2018, given that production is scheduled for 2,300 units.
(3) What is the difference between using the High - low method and Least Square (Regression) method.
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