7. Store ABC has the following information: Shirts No of units 500 Unit price 300 Ties Socks Suits Jackets Overcoats 2,400 7.5 The total variable $300,000 Fixed costs: $100,000 Determine BEP 900 30 700 50 200 800 150 300

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Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order Processing Costs 1 3,000 $49,620 2 1,500 30,225 4,400 72,420 2.800 49,140 2.300 41,865 25,860 37,500 3 4 S 6 7 1,200 2,000 NOTE: Round variable cost per unit answers to two decimal places, if appropriate. (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. $ 15:400 +5 24.26 * 8400 + M.SS* Correct (b.) 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: Scatter Diagram $ 15,622 X+$ 23.93 XX

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Whose higer in terms in buyisng and selling dep

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