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 )?
