Sassa Company produces and sells rattan baskets. The number of driftsproduced are the corresponding total production costs for six months, which arerepresentatives for the year, are as follows:MonthUnits ProducedProduction CostsP 4,000AprilМay5007008,000June9006,0007,500JulyAugustSeptember6008008,5005507,250Solve for the variable and fixed cost component using Least- Squares Regressionmanually and not on excel.

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Answered: Sassa Company produces and sells rattan…

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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Company produces and sells rattan baskets. The number of drifts produced are the corresponding total production costs for six months, which are representatives for the year, are as follows: Using the least squares method, the variable production cost per unit is approximately a. P 5. b. P10. c. P0.27. d. P3.74.

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