The Plant Manager Requested Information to Assist in Estimating Maintenance

Essay

The plant manager requested information to assist in estimating maintenance costs.The following computer printout was generated using the least-squares method:
$\begin{array}{|l|r|}\hline \text { Intercept } & 2,550 \\\hline \text { Slope } & 1.85 \\\hline \text { Correlation coefficient } & 0.84 \\\hline \text { Activity variable } & \text { Units of production volume } \\\hline\end{array}$
a.Using the information from the computer printout,develop a cost function that can be used to estimate maintenance costs at different volume levels.
b.Estimate maintenance costs if expected production for next month is 10,000 units.