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Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package
applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform
throughout the year. The recently hired controller for the firm is about to apply the highlow method in estimating the
company's energy cost behavior. The following costs were incurred during the past months:
Required:
Use the highlow method to estimate the company's energy cost behavior and express it in equation form. Use the formula
where denotes energy cost for a month and denotes pints of applesauce produced.
Predict the energy cost for a month in which pints of applesauce are produced.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Use the highlow method to estimate the company's energy cost behavior and express it in equation form. Use the formula
where denotes energy cost for a month and denotes pints of applesauce produced.
Note: Round coefficient of to decimal places.
