Requirements1. Describe the production costs in the equation form Y = f + xX.2. Assume Alta intends to produce 400 units next month. Calculate thetotal production costs for the month using (a) account analysis, (b) high-low method, (c) scattergraph method, and (d) regression analysis inexcel. APPLICATION• Alta Production, Inc., is using the account analyis approach to identify the beharior ofproduction costs for a month in which it prodaced 350 units. The production managerwas asked to review these costs and provide her best guess as to how they should becatevorized. She resoonded with the followine information:Tetal fe)S270,000134,000101.000$507.000Variable (e)S270,000130,000100,0003500.000FixedMaterials used in productionLabor used in productionProduction facility costsTotal production cost4.0003.00037.000• Alta Production, Inc., reported the following production costs for the 12 monthsJanuary through December.Reporting Period (Month) Total Production Costs Level of Activity (Units Produced)January$460,000300February300,000220March480,000330Аpril550,000390570,000310,000May410June240July440,000290August455,000320September530,000380250,000150OctoberNovember700,000450December490,000350

Given information Cost function Y=f+Vx Given data analyze cost for 350 units.

Requirements 1. Describe the production costs in the equation formY = f+ xX. 2. Assume Alta intends to produce 400 units next month. Calculate the total production costs for the month using (a) account analysis, (b) high- low method, (c) scattergraph method, and (d) regression analysis in excel.

Requirements 1. Describe the production costs in the equation formY = f+ xX. 2. Assume Alta intends to produce 400 units next month. Calculate the total production costs for the month using (a) account analysis, (b) high- low method, (c) scattergraph method, and (d) regression analysis in excel.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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