The Controller of Joy Co Has Requested a Quick Estimate

question 45

Multiple Choice

The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for July when production is expected to be 470,000 units.Below are actual data from the prior three months of operations:
$\begin{array}{|l|r|r|}\hline & \text { Production in units } & \text { Manufacturing supplies } \\\hline \text { March } & 450,000 & \$ 723,060 \\\hline \text { April } & 540,000 & 853,560 \\\hline \text { May } & 480,000 & 766,560 \\\hline\end{array}$
Using these data and the high-low method,what is the best estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.)

• A) $752,060.
• B) $755,196.
• C) $805,284.
• D) $1,188,756.

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