CumberlandCompany has had the following experience over the past five quarters

CumberlandCompany has had the following experience over the past five quarters:



Units produced Electricity cost ($)

87,000 144,500

92,000 151,000

81,000 138,500

90,000 150,000

95,000 159,500



a) Using the high-low method, determine an equation for electricity cost (Y) as a function of units produced (X). Assume a linear function.

b) Using your equation, forecast electricity cost at a volume of 88,000 units produced.


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