6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month January April July October Cost of Electricity (Y) Direct Labor-Hours (X) $7,000 750 $7,500 850 $8,500 $7,250 1,000 800 What would be the best equation using the high-low method? A) Y = $2,000+ $7.50X B) Y= $2,500 + $6X C) Y= $1,500 + $8X D) Y = $2,000 + $6X
6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month January April July October Cost of Electricity (Y) Direct Labor-Hours (X) $7,000 750 $7,500 850 $8,500 $7,250 1,000 800 What would be the best equation using the high-low method? A) Y = $2,000+ $7.50X B) Y= $2,500 + $6X C) Y= $1,500 + $8X D) Y = $2,000 + $6X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its
monthly cost of electricity. It has the following data:
Month
January
April
July
October
Cost of Electricity (Y) Direct Labor-Hours (X)
$7,000
750
$7,500
850
$8,500
$7,250
1,000
800
What would be the best equation using the high-low method?
A) Y = $2,000+ $7.50X
B) Y= $2,500 + $6X
C) Y= $1,500 + $8X
D) Y = $2,000 + $6X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedc2d1f9-b77d-4fbd-9e59-0ce4099c2b3d%2F276c8ff9-848d-4542-af60-e5d1fda43267%2Fv57vqo9_processed.png&w=3840&q=75)
Transcribed Image Text:6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its
monthly cost of electricity. It has the following data:
Month
January
April
July
October
Cost of Electricity (Y) Direct Labor-Hours (X)
$7,000
750
$7,500
850
$8,500
$7,250
1,000
800
What would be the best equation using the high-low method?
A) Y = $2,000+ $7.50X
B) Y= $2,500 + $6X
C) Y= $1,500 + $8X
D) Y = $2,000 + $6X
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