Question

Plot the data on a scatter diagram. Using the information from representative high-and low-volume months, develop a cost estimating equation for monthly production costs. If needed, an Excel worksheet is provided in the following link in order to create the scatter diagram $ ------ + $ ----- X

Month Sales Orders Order-Processing Costs

1 3,000 $ 82,700

2 1,500 50,375

3 4,400 120,700

4 2,800 81,900

5 2,300 69,775

6 1,200 43,100

7 2,000 62,500

Answer 1