Because July's furnace relining sits at the low point, high-low reports 39.07 dollars a ton against regression's 61.20 in this cost behavior analysis for AC420 Unit 2. Searches like "ac 420 unit 2 assignment example", "ac420 unit 2 sample" and "ac420 unit 2 example" land here.
What a finished AC420 Unit 2 cost behavior analysis looks like
A data table opens the analysis: twelve months of tons melted, induction furnace power cost and furnace power-on hours, with July marked as the month the furnace lining was replaced. Beneath it sit three estimates in one comparison block. High-low, built on October's 655 tons and July's 318, gives 39.07 dollars a ton and 33,334 of fixed cost. A regression on all twelve months gives 43.65 and 28,732, with an R-squared of 0.879. The same regression without July gives 61.20 and 18,572, and R-squared rises to 0.991. A second block tests the driver itself, setting power-on hours against tons. Forecasts at 600 tons close the page, ranging from 54,919 to 56,773 dollars, with the relining carried as a separate line of roughly 7,700.
How a AC420 Unit 2 example is structured
The analysis argues from the data toward the method, not the reverse. July is flagged in the table before any estimate is computed, because the operational fact, a relining that ended in a cold-start dry-out, is what later justifies setting it aside; a statistical outlier rule would be a weaker reason. High-low is computed first and fairly, and its weakness is shown to be specific rather than general: its low point is the one abnormal month. The full-year regression follows, showing that more data dilutes the problem without removing it. Only then is July excluded, with its 7,723-dollar residual reported as a relining cost to budget on its own. The driver test comes after the method choice, since comparing tons with furnace hours means little until the anomaly is handled. Forecasts close the page, naming the estimate carried into the budget and the tonnage range it covers.
Twelve months, one abnormal
Tons melted, power cost and furnace hours by month, with July's relining noted beside its row before any computation, so the later exclusion has a documented cause.
High-low on the wrong pair
October and July give 39.07 dollars a ton. The slope flattens because July's cold-start power sits well above where 318 tons would otherwise put it.
Regression, twelve points then eleven
43.65 dollars a ton with July included, 61.20 without it. Fit rises from 0.879 to 0.991 once the relining month stops pulling the line.
Tons or furnace hours
Power-on hours explain less of the bill than tonnage, 0.925 against 0.991 on the same eleven months, so tons remains the driver in the formula.
The formula carried forward
18,572 dollars a month plus 61.20 per ton between roughly 430 and 655 tons, with the relining budgeted as its own amount in the month it is scheduled.
Where marks go in AC420 Unit 2
The costliest error on this problem is accepting the high-low answer because its arithmetic is right. It is right, and it rests on the relining month, so the rate it reports is about a third too low; a reviewer sees that at once when the data table flags July. Removing July without an operational reason is penalized as well, since unexplained exclusions look like tidying the data to improve the fit. Reporting R-squared as proof that a line is correct, rather than as the share of monthly variation explained, is marked down in a good number of sections. Forecasts beyond the observed tonnage lose points unless labeled as extrapolation. Choosing furnace hours as the driver without testing tons, or testing both and never saying which wins, leaves the method argument unfinished.
Get a AC420 Unit 2 example written to your instructions
Paste in the monthly cost and activity data from the Unit 2 problem, say which estimation methods the instructions require, and attach the rubric. Every method comes back computed on your months, any unusual period identified by its cause and the choice of estimate argued in writing. A first custom sample is free and usually ready within 24-48h.
AC420 Unit 2 questions, answered
Is it acceptable to drop a month from the regression?
When the month reflects a different cost structure and the reason is operational, yes, provided the analysis says so and shows the effect. Here the relining is documented, and its residual of roughly 7,700 dollars becomes a separate budget line rather than disappearing. What graders mark down is a month dropped because it spoils the fit, with no reason beyond the statistics.
Why test a second cost driver at all?
Because the unit asks for the estimate to be defended, and a driver chosen without comparison is only an assumption. Furnace hours are a plausible candidate for power cost, so the sample fits both and reports which explains more of the monthly variation. When a problem supplies only one activity measure, the sample notes the untested alternative in a sentence instead.
Does AC420 expect regression output from Excel?
Many sections supply regression output or ask for it; others accept high-low with a written critique. The sample reports intercept, slope, R-squared and the standard error of the slope when regression is required, and explains each in terms of the foundry's power bill. If your instructions call for a scatter plot as well, it is added with the relining month labeled.