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The Browne's Town housing Scheme operates a Laundromat, solely for the purpose of providing laundering...

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Accounting

The Browne's Town housing Scheme operates a Laundromat, solely for the purpose of providing laundering services to Tenants in residence. You have been hired as an accountant , to analyze the cost of the laundering services. The Housing administration has assembled the data for a twelve month period pertaining to the monthly total costs of providing the service and the corresponding number of Tenants who used the laundering facilities each month. The table below shows the monthly data collected over the academic year under review.

Month Total Laundering Costs # of Tenants Laundering
August 188000 1200
September 213100 1650
October 232000 2000
November 248200 2300
December 261700 2550
January 269800 2700
February 242800 2200
March 250900 2350
April 253600 2400
May 226600 1900
June 169900 850
July 161800 700

e) Using the trend line, determine Browne Town's Housing Scheme fixed cost per month and the variable cost per Tenant. (Use 0 & 2,500 Tenants) f) Based on the scatter gram, what is the equation of the total mixed cost function? g) Which of the two methods would be more appropriate? Explain your answer.

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