Smith Glass Co. produces industrial glass. Smith forecasts inspection costs using the high-lowmethod and has compiled the following data from prior results:2015 2016 2017 2018 2019Total operating hours 5,683 3,197 4,105 5,056 3,586Inspection costs ($) 50,457 46,835 53,227 49,734 43,649Looking solely at the data in the table, which two years should Smith select for the high-low methodof analysis? Would you consider using different points and why?
Smith Glass Co. produces industrial glass. Smith forecasts inspection costs using the high-lowmethod and has compiled the following data from prior results:2015 2016 2017 2018 2019Total operating hours 5,683 3,197 4,105 5,056 3,586Inspection costs ($) 50,457 46,835 53,227 49,734 43,649Looking solely at the data in the table, which two years should Smith select for the high-low methodof analysis? Would you consider using different points and why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Smith Glass Co. produces industrial glass. Smith
method and has compiled the following data from prior results:
2015 2016 2017 2018 2019
Total operating hours 5,683 3,197 4,105 5,056 3,586
Inspection costs ($) 50,457 46,835 53,227 49,734 43,649
Looking solely at the data in the table, which two years should Smith select for the high-low method
of analysis? Would you consider using different points and why?
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