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Unformatted text preview: 90 $2,900 Apr 120 $3,300 May 100 $3,000 Jun 130 $3,600 Jul 150 $4,000 Aug 140 $3,600 Sep 110 $3,100 Oct 80 $2,500 intercept $1,171 slope $18.18 RSQ 96.85% high correlation Hi/Lo Method : y = A + b(x) Step 1  Find VC /unit (b) Scans Utility Cost Hi pt 150 $4,000 Lo pt 60 $2,200 Change 90 $1,800 $20.0000 Step 2  Substitute value of b into formula & solve for A y (Utility Cost) = A ( fixed component) + b (VC/unit) Hi pt $4,000 A ( fixed component) + $20.0000 $4,000 A ( fixed component) + $3,000 Solve for A $1,000 Hi/Lo Method Cost Equation: y = $1000 + $20.00(x) Step 3  Test values of b & A by substituting into Lo point formula y (Utility Cost) = A ( fixed component) + b (VC/unit) LO pt y = $1,000 + $20.0000 y = $1,000 + $1,200 Solve for y $2,200 40 $ $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Utility Cost x (SCANS) 150 x (SCANS) 60 60 80 100 120 140 160 Column C ScansTaken...
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 Fall '10
 Smith
 Harshad number, Jul Aug Sep

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