Tools Are Us Corporation produces toolboxes used by construction professionals a

Question

Tools Are Us Corporation produces toolboxes used by construction professionals and homeowners. The company is concerned that it does not have an understanding of its utility consumption. The company's president, George, has asked the plant manager and cost accountant to work together to get information about their utilities cost. The two of them accumulated the following data for the past 14 months (production volume is presented in units): Required: A. Use the high/low method to determine the company's utility cost equation. When required, carry the amount out to three decimal places. $ + $ (Units produced) B. What would be the expected utility cost of producing 120,000 units? (The relevant range is 85,000 to 125,000 units of production.) $

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