10 May WHAT FACTORS MIGHT HAVE CAUSED THE DIFFERENCE IN THE EQUATIONS DEVELOPED FOR REQUIREMENTS (A ) AND ( B )?
Scatter Diagrams and High-Low Cost EstimationAssume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs.Month Sales OrderOrder Processing Costs13 000$82 7002 1 50050 3753 4 400 120 70042 80081 90052 300 69 7756 1 200 43 10072 00062 500Requireda. Use information from the high-and low-volume months to develop a cost-estimating equation for monthly order-processing costs.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.c. What factors might have caused the difference in the equations developed for requirements (a ) and ( b )?
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