The Aust Corporation has  gathered the following data on its copy machine

The Aust Corporation has  gathered the following data on its copy machine costs for the first eight months of the year.

Required

a. Prepare a scattergraph of the cost information and then choose a line that you believe best represents the cost function. Represent your chosen line with a cost equation of the form y = mx + b.  Show your calculations.

b. Using the high-low method, what is the variable cost per copy?

c. Using the high-low method, what is the fixed cost per month?

d. Using the high-low method, represent the cost function with a cost equation of the form y = mx + b.

e. Using your cost equation from part (d), provide your best estimate of the copy costs for September if 62,000 copies will be made. Why does your estimate differ from the $5,800 cost incurred in June?

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