Frederick, financial analyst at YTZ Corporation, is examining the behavior of quarterly utility costs for...
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Accounting
Frederick, financial analyst at YTZ Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Frederick collects the following data on machine-hours worked and utility costs for the past 8 quarters:
Quarter Machine-Hours Utility Costs
1 100,000 $225,000
2 55,000 160,000
3 90,000 210,000
4 105,000 270,000
5 70,000 180,000
6 95,000 250,000
7 85,000 235,000
8 80,000 205,000
Requirement 1. Estimate the cost function for the quarterly data using the high-low method.
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