Tomas Ocampo has just been appointed chairperson of the Accountancy Department of ADEB College. In reviewing the department’s cost records, Tomas has found the following total cost associated with MAS Part 2 subject over the last several terms: Semester/Term Number of Subjects Offered Total Cost AY2004, First Semester 4 P10,000 AY2004, Second Semester 6 14,000 AY2004, Summer 2 7,000 AY2005, First Semester 5 13,000 AY2005, Second Semester 3 9,500 Tomas knows that there are some variable costs, such as amounts paid to student assistants, associated with the course. He would like to have variable and fixed cost components separated for planning purposes. Using the least-squares method, what is the variable cost per section of MAS?
Tomas Ocampo has just been appointed chairperson of the Accountancy Department of ADEB College. In reviewing the department’s cost records, Tomas has found the following total cost associated with MAS Part 2 subject over the last several terms:
|
Semester/Term |
Number of Subjects Offered |
Total Cost |
|
AY2004, First Semester |
4 |
P10,000 |
|
AY2004, Second Semester |
6 |
14,000 |
|
AY2004, Summer |
2 |
7,000 |
|
AY2005, First Semester |
5 |
13,000 |
|
AY2005, Second Semester |
3 |
9,500 |
Tomas knows that there are some variable costs, such as amounts paid to student assistants, associated with the course. He would like to have variable and fixed cost components separated for planning purposes.
Using the least-squares method, what is the variable cost per section of MAS?
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