Question - Using the data from table,
|
Month
|
Units
|
Total cost
|
|
April
|
8000
|
30400
|
|
May
|
6400
|
25800
|
|
June
|
3800
|
18300
|
|
July
|
5600
|
23200
|
|
August
|
7000
|
26000
|
|
September
|
8400
|
29800
|
|
October
|
7800
|
26500
|
|
November
|
6800
|
25700
|
1. Perform a least-squares regression analysis on the data using excel.
2. What is the total fixed cost?
3. What is the variable cost per unit?
4. What would total cost be for a month with 7500 units produced?
5. What proportion of variation in cost is explained by a variance in production?