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3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. 3-b. Can you see any problem with using the cost formula from part (2) to derive this total cost figure?

3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. 3-b. Can you see any problem with using the cost formula from part (2) to derive this total cost figure?

Foundations of Business - Standalone book (MindTap Course List)
Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
Problem 5DQ
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Aa.54.

 

Required information [The following information applies to the questions displayed below.] Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Term Fall, last year Winter, last year Sunner, last year. Fall, this year Winter, this year Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. Required 3A Required 3B Number of Sections Offered 3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. 3-b. Can you see any problem with using the cost formula from part (2) to derive this total cost figure? 6 5 3 4 2 Complete this question by entering your answers in the tabs below. Fixed cost Variable cost Total expected cost Total Cost $ 12,500 $ 11,000 $ 10,500 $ 10,500 $ 6,000 Sho Transcri Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Required 3A Required 3B < Required 3A Complete this question by entering your answers in the tabs below. Required 3B > Can you see any problem with using the cost formula from part (2) to derive this total cost figure? Coefficient estimates may have high variance. Prediction is not guaranteed to become actual. Prediction is out of the relevant range. Prediction is based on old data. < Required 3A Required 3B >
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Term Fall, last year Winter, last year Sunner, last year. Fall, this year Winter, this year Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. Required 3A Required 3B Number of Sections Offered 3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. 3-b. Can you see any problem with using the cost formula from part (2) to derive this total cost figure? 6 5 3 4 2 Complete this question by entering your answers in the tabs below. Fixed cost Variable cost Total expected cost Total Cost $ 12,500 $ 11,000 $ 10,500 $ 10,500 $ 6,000 Sho Transcri Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Required 3A Required 3B < Required 3A Complete this question by entering your answers in the tabs below. Required 3B > Can you see any problem with using the cost formula from part (2) to derive this total cost figure? Coefficient estimates may have high variance. Prediction is not guaranteed to become actual. Prediction is out of the relevant range. Prediction is based on old data. < Required 3A Required 3B >
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