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Question - Kaiser Ltd. uses the high-low method to estimate the cost function. The information for 2018 is provided below.
Month Machine hours Labour costs ($)
January 130 5,124
February 250 7,611
March 180 6,208
April 165 6,300
May 240 9,800
June 80 3,200
July 155 6326
August 190 7,200
September 230 8,138
October 250 8,600
November 260 10,004
December 190 7,400
Required - What is the estimate of Kaiser's cost function when 120 machine hours are used (to the nearest dollar)?
A. $4,347
B. $4,712
C. $4,744
D. $4,797
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