Question

5. Scatter Diagram (10 Points). Used the scatter diagram below and develop a cost-estimating equation for month production costs. 25000 20000 15000 Order-Processing Costs 10000 5000 o 0 200 400 600 800 1000 1200 14 Sales Orders

Answer 1

1 25000 کی مرمت 26000 15000 order processing 10000 5000 + 200 400 600 900 1000 1200 1400 sales our drawn line touches the Y quis. We have that orders. We will make the cost estimation equation in five steps: Step : Plot the data points for each period on a slep 2 : visually fir a line to the data points and be sure that the line touches one data point. Estimate the total fined costs (f). step 4: Calculate the variable lost per unit (W) steps: steate the reesults in equation form. We have completed our first two steps by graph and fitted a line to the data points and our line is touches at least one data point & As we can seed. We take the fined cost at the where agraph. Step3 : Now, plotting the points on Step 3 point intercept at 2500 Lopprouimately) This step will always be an appronimation). calculate the variable cost per unit (u). offer completing Slep 3, the equation line us partically completed Stebu:

v. 2500 + 10.8 x So cost е our monthly Y = stimating equation is 2500 + + 10.8 X