Conquest Industries made the following observations of supply costs at different production volume levels: a. Using the method of least squares, develop an estimate of total fixed costs and variable cost per unit. (Round your estimate of variable cost per unit to two decimal points.)
b. Develop a cost function to estimate supply cost at different volume levels and then estimate supply cost if production is expected to be 700 units.
c. If the coefficient of correlation was .95, what percentage of the change in supply cost could be explained by changes in production volume?

Question

Conquest Industries made the following observations of supply costs at different production volume levels:  a. Using the method of least squares, develop an estimate of total fixed costs and variable cost per unit. (Round your estimate of variable cost per unit to two decimal points.)
b. Develop a cost function to estimate supply cost at different volume levels and then estimate supply cost if production is expected to be 700 units.
c. If the coefficient of correlation was .95, what percentage of the change in supply cost could be explained by changes in production volume?

Quizplus · Accepted Answer

The Answer of Conquest Industries made the following observations of supply costs at different production volume levels:  a. Using the method of least squares, develop an estimate of total fixed costs and variable cost per unit. (Round your estimate of variable cost per unit to two decimal points.)
b. Develop a cost function to estimate supply cost at different volume levels and then estimate supply cost if production is expected to be 700 units.
c. If the coefficient of correlation was .95, what percentage of the change in supply cost could be explained by changes in production volume?

Conquest Industries Made the Following Observations of Supply Costs at Different