Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Week Units Produced Mixed Cost 1 12,000 $35, 300 2 13,500 $ 39, 500 3 14, 000 $ 41, 100 4 13, 700 $ 39, 620 5 11,500 $ 34,400 6 10, 100 $ 32, 050 7 10,800 $ 32, 380 8 14, 400 $ 41,890 9 11,200 $ 34, 200 10 13, 200 $ 39, 150 Using least -squares regression, the estimate for the fixed cost per week is closest to:

Assume that a company wants to separate a mixed cost into its variable and fixed elements for cost estimation purposes. It provided the following information: Week Units Produced Mixed Cost 1 12,000 $35, 300 2 13,500 $ 39, 500 3 14, 000 $ 41, 100 4 13, 700 $ 39, 620 5 11,500 $ 34,400 6 10, 100 $ 32, 050 7 10,800 $ 32, 380 8 14, 400 $ 41,890 9 11,200 $ 34, 200 10 13, 200 $ 39, 150 Using least -squares regression, the estimate for the fixed cost per week is closest to:

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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