The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Connors Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. A company has heard about a method of measuring cost functions called the regression analysis and has decided to use it in this situation. Cost Hours $23,000 5,000 $26,000 6,450 $34,600 7,650 $42,000 10,000 $38,000 9,350 What is the estimated total cost at an operating level of 9,000 hours? A) $34,200 B) $38,200 C) $41,400 D) $37,800 Work question #7 using regression analysis
The Connors Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Connors Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. A company has heard about a method of measuring cost functions called the regression analysis and has decided to use it in this situation. Cost Hours $23,000 5,000 $26,000 6,450 $34,600 7,650 $42,000 10,000 $38,000 9,350 What is the estimated total cost at an operating level of 9,000 hours? A) $34,200 B) $38,200 C) $41,400 D) $37,800 Work question #7 using regression analysis
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter11: Linear Optimization Models
Section: Chapter Questions
Problem 10P: The management of Hartman Company is trying to determine the amount of each of two products to...
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The Connors Company has assembled the following data pertaining to certain costs that cannot be
easily identified as either fixed or variable. Connors Company has heard about a method of measuring
cost functions called the high-low method and has decided to use it in this situation.
A company has heard about a method of measuring cost functions called the regression analysis and has
decided to use it in this situation.
Cost Hours
$23,000 5,000
$26,000 6,450
$34,600 7,650
$42,000 10,000
$38,000 9,350
What is the estimated total cost at an operating level of 9,000 hours?
A) $34,200
B) $38,200
C) $41,400
D) $37,800
Work question #7 using regression analysis
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