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Q1) Westminster Company has had following 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 the equation for electricity cost (Y) as function of units produced (X). Suppose a linear function.

b)  Using your equation, predict electricity cost at the volume of 29,000 units produced.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917810

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