Q1) Westminster Company has had the given experience over past five quarters:
Units produced |
Electricity cost ($) |
27,000 |
101,000 |
32,000 |
120,000 |
31,000 |
116,000 |
20,000 |
84,000 |
22,000 |
90,000 |
a) Using high-low method, find out equation for electricity cost (Y) as function of units produced (X). Suppose a linear function.
b) Using your equation, predict electricity cost at volume of 29,000 units produced.