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Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Month Units Produced Mixed Cost January 1,050 $ 11,045 February 1,150 $ 11,870 March 1,100 $ 11,560 April 1,250 $ 12,100 May 950 $ 10,800 June July August 1,280 990 1,010 $ 12,210 $ 10,970 $ 11,005 Using least-squares regression, the estimate for the variable cost per unit is closest to: Multiple Choice O O $4.24. $5.36. $4.54. $5.56.

Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Month Units Produced Mixed Cost January 1,050 $ 11,045 February 1,150 $ 11,870 March 1,100 $ 11,560 April 1,250 $ 12,100 May 950 $ 10,800 June July August 1,280 990 1,010 $ 12,210 $ 10,970 $ 11,005 Using least-squares regression, the estimate for the variable cost per unit is closest to: Multiple Choice O O $4.24. $5.36. $4.54. $5.56.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Month Units Produced Mixed Cost January 1,050 $ 11,045 February 1,150 $ 11,870 March 1,100 $ 11,560 April 1,250 $ 12,100 May 950 $ 10,800 June July August 1,280 990 1,010 $ 12,210 $ 10,970 $ 11,005 Using least-squares regression, the estimate for the variable cost per unit is closest to: Multiple Choice O O $4.24. $5.36. $4.54. $5.56.
Transcribed Image Text:Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Month Units Produced Mixed Cost January 1,050 $ 11,045 February 1,150 $ 11,870 March 1,100 $ 11,560 April 1,250 $ 12,100 May 950 $ 10,800 June July August 1,280 990 1,010 $ 12,210 $ 10,970 $ 11,005 Using least-squares regression, the estimate for the variable cost per unit is closest to: Multiple Choice O O $4.24. $5.36. $4.54. $5.56.
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