A department in a large organisation wishes to develop a method of predicting its total costs in a period. The following data have been recorded.
|
Month
|
Activity level (X)
|
Cost
|
|
|
units
|
$
|
|
January
|
1,600
|
28,200
|
|
February
|
2,300
|
29,600
|
|
March
|
1,900
|
28,800
|
|
April
|
1,800
|
28,600
|
|
May
|
1,500
|
28,000
|
|
June
|
1,700
|
28,400
|
The total cost model for a period could be represented by what equation?