Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Carlton collects the following data on machine-hours worked and utility costs for the past 8 quarter (Click the icon to view the data.) Read the requirements. Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.) Requirements 1. Estimate the cost function for the quarterly data using the high-low method. 2. Plot and comment on the estimated cost function. 3 Carlton anticipates that MVR will operate machines for 100.000 hours in - X Data table Quarter Quarter 1 Quarter 2 Machine-Hours C Utility Costs 265,000 200,000 95,000 $ 50,000 - X
Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Carlton collects the following data on machine-hours worked and utility costs for the past 8 quarter (Click the icon to view the data.) Read the requirements. Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.) Requirements 1. Estimate the cost function for the quarterly data using the high-low method. 2. Plot and comment on the estimated cost function. 3 Carlton anticipates that MVR will operate machines for 100.000 hours in - X Data table Quarter Quarter 1 Quarter 2 Machine-Hours C Utility Costs 265,000 200,000 95,000 $ 50,000 - X
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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Question
A 155.
![Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Carlton collects the following data on machine-hours worked and utility costs for the past 8 quarters:
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.)
Requirements
1. Estimate the cost function for the quarterly data using the high-low method.
2. Plot and comment on the estimated cost function.
3. Carlton anticipates that MVR will operate machines for 100,000 hours in
quarter 9. Calculate the predicted utility costs in quarter 9 using the cost
function estimated in requirement 1.
Print
Done
X
Data table
Quarter
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Quarter 7
Quarter 8
Machine-Hours
Print
100,000
65,000
C
95,000 $
50,000
85,000
90,000
80,000
75,000
Utility Costs
265,000
200,000
250,000
280,000
220,000
260,000
275,000
245,000
Done](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcba05d60-d3bd-4808-bb9d-31b77b9f9189%2F2519844f-6157-47a2-a7a6-48d782733ae9%2Fqm4q719_processed.png&w=3840&q=75)
Transcribed Image Text:Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Carlton collects the following data on machine-hours worked and utility costs for the past 8 quarters:
(Click the icon to view the data.)
Read the requirements.
Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.)
Requirements
1. Estimate the cost function for the quarterly data using the high-low method.
2. Plot and comment on the estimated cost function.
3. Carlton anticipates that MVR will operate machines for 100,000 hours in
quarter 9. Calculate the predicted utility costs in quarter 9 using the cost
function estimated in requirement 1.
Print
Done
X
Data table
Quarter
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Quarter 5
Quarter 6
Quarter 7
Quarter 8
Machine-Hours
Print
100,000
65,000
C
95,000 $
50,000
85,000
90,000
80,000
75,000
Utility Costs
265,000
200,000
250,000
280,000
220,000
260,000
275,000
245,000
Done
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