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Murphy Corporation has the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Murphy Corporation has decided to use a method of measuring cost functions called the high-low method in this situation.
Month Cost HoursJanuary $37,000 3,550February 24,400 2,000March 36,280 2,540April 41,400 3,110May 44,160 3,900June 40,240 3,840
What would Murphy Corporation's total estimated cost be if it operated at 2,950 hours?
What would be the cost estimation equation, using Y for total costs and X for hours?
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