Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement t Complete this

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
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Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in
estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine
hours. These data are from the previous fiscal year for maintenance costs and machine hours:
Month Maintenance Costs Machine Hours
$ 2,650
1
2
9
10
11
12
2,810
2,960
3,070
3,150
3,120
3,060
2,900
2,670
2,270
2,280
2,500
1,740
1,820
1,900
1,920
1,950
1,930
1,910
1,890
1,750
1,150
1,350
1,640
Required:
1. What is the cost equation for maintenance costs using the high-low method?
2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Input your final
answer as a percentage rounded to 1 decimal place (i.e., 0.054 = 5.4%). Include any outliers in your calculations.)
Mean absolute percentage error (MAPE)
Help
%
Transcribed Image Text:Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours $ 2,650 1 2 9 10 11 12 2,810 2,960 3,070 3,150 3,120 3,060 2,900 2,670 2,270 2,280 2,500 1,740 1,820 1,900 1,920 1,950 1,930 1,910 1,890 1,750 1,150 1,350 1,640 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Input your final answer as a percentage rounded to 1 decimal place (i.e., 0.054 = 5.4%). Include any outliers in your calculations.) Mean absolute percentage error (MAPE) Help %
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