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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.

Accounting Basics, Accounting

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  • Reference No.:- M919078

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