Wyoming Wholesale has gathered the following data on the number of shipments received and the cost of receiving reports for the first seven weeks of 2013. Number of Shipments Received Weekly Cost of Receiving Reports 50 $175 44 162 40 154 35 142 53 185 58 200 60 202 a. Using the high-low method, develop the equation for predicting weekly receiving report costs based on the number of shipments received. b. What is the predicted amount of receiving report costs for a week in which 72 shipments are received?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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LO.4 (High-low method) Wyoming Wholesale has gathered the following data on the number of shipments received and the cost of receiving reports for the first seven weeks of 2013.

Number of
Shipments Received
Weekly Cost of
Receiving Reports
50 $175
44 162
40 154
35 142
53 185
58 200
60 202

a. Using the high-low method, develop the equation for predicting weekly receiving report costs based on the number of shipments received.

b. What is the predicted amount of receiving report costs for a week in which 72 shipments are received?

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