August September 800 8,500 7,250 550 Based on the given information and using least square method of computation, select the best answer for each question, where: Y= total monthly production costs X= number of units produced per month a= fixed production cost per moth b= variable production cost per month n= number of months E=summation Required: Compute the following: 1. Variable cost per unit 2. Monthly Fixed Cost per unit 3. Cost Function
August September 800 8,500 7,250 550 Based on the given information and using least square method of computation, select the best answer for each question, where: Y= total monthly production costs X= number of units produced per month a= fixed production cost per moth b= variable production cost per month n= number of months E=summation Required: Compute the following: 1. Variable cost per unit 2. Monthly Fixed Cost per unit 3. Cost Function
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
Related questions
Question
![Problem 3
Belle Company produces and sells rattan baskets. The number of units produced
and the corresponding total production costs for six months, which are representatives
for the year, are as follows:
Months
Units Produced
Production Costs
April
May
June
July
500
700
P4,000
8,000
6,000
7,500
900
600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F336a48b9-bbe2-4a9a-a140-916cf3173354%2F45a40598-f627-43b5-b88b-b8b058a58a5c%2Fgyc9syn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 3
Belle Company produces and sells rattan baskets. The number of units produced
and the corresponding total production costs for six months, which are representatives
for the year, are as follows:
Months
Units Produced
Production Costs
April
May
June
July
500
700
P4,000
8,000
6,000
7,500
900
600
![August
September
800
8,500
7,250
550
Based on the given information and using least square method of computation, select the
best answer for each question, where:
Y= total monthly production costs
X= number of units produced per month
a= fixed production cost per moth
b= variable production cost per month
n= number of months
em
ort
dly
E=summation
Required: Compute the following:
1. Variable cost per unit
2. Monthly Fixed Cost per unit
3. Cost Function
nd](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F336a48b9-bbe2-4a9a-a140-916cf3173354%2F45a40598-f627-43b5-b88b-b8b058a58a5c%2Fua4kd9dc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:August
September
800
8,500
7,250
550
Based on the given information and using least square method of computation, select the
best answer for each question, where:
Y= total monthly production costs
X= number of units produced per month
a= fixed production cost per moth
b= variable production cost per month
n= number of months
em
ort
dly
E=summation
Required: Compute the following:
1. Variable cost per unit
2. Monthly Fixed Cost per unit
3. Cost Function
nd
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