Thompson Enterprises owns two luxury automobiles that are used by employees on company business.Mileage and expenses,excluding depreciation,by quarters for the most recent year are presented below:

Quarter Mileage Expenses

First 3,000 $ 550

Second 3,500 560

Third 2,000 600

Fourth 3,500 $2,160

12,000Required:Determine the variable cost per mile (nearest tenth of a cent)and the fixed costs per quarter,using the method of least squares.

Question

Thompson Enterprises owns two luxury automobiles that are used by employees on company business.Mileage and expenses,excluding depreciation,by quarters for the most recent year are presented below:

Quarter	Mileage	Expenses
First	3,000	$ 550
Second	3,500	560
Third	2,000	600
Fourth	3,500	$2,160

12,000Required:Determine the variable cost per mile (nearest tenth of a cent)and the fixed costs per quarter,using the method of least squares.

Quizplus · Accepted Answer

The Answer of Thompson Enterprises owns two luxury automobiles that are used by employees on company business.Mileage and expenses,excluding depreciation,by quarters for the most recent year are presented below:

Quarter	Mileage	Expenses
First	3,000	$ 550
Second	3,500	560
Third	2,000	600
Fourth	3,500	$2,160

12,000Required:Determine the variable cost per mile (nearest tenth of a cent)and the fixed costs per quarter,using the method of least squares.

Thompson Enterprises Owns Two Luxury Automobiles That Are Used by Employees