Millers minerals co.manufactures a product that requires the use of a considerabla amount of natural gas to heat it to a desired temperature.the process requires a constant level of heat, so the furnances are maintainedat a set temperaturefor 24 hours a day. Although units are not continuously processed, mgtdesires that VCbe charged directly to theproduct and the FC to the factory OH.
Units Cost
jan 2400 4400
feb 2300 4300
mar 2200 4200
apr 2000 4000
may 1800 3800
june 1900 3900
july 2200 4400
aug 2100 4100
sep 2000 3800
oct 1400 3450
nov 1900 3700
dec 1800 4050
Required:
1. Seperate the Variable and fixed element, using high low method
2. VC to be charged to the product
3. FC to be charged to the factory OH
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