Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage to a welding shop making and selling metal doors and windows. He had anticipated that he cost of welding shop would primarily be final but has realized that the welding cost increased with the increase in number of welding job assignment. The costs of welding job assignments are as follows.
No of welding job assignments
Total cost sh ‘000’
Formulate an equation to estimate the total cost of the welding shop and compute the cost of undertakings 1256 assignment using
i) High-low method
ii) Simple linear regression method.
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