Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable
costs associated with the leasing of machinery. Data for the past four months were collected as follows:
Month Lease cost
Machine hours
April
$15,000
800
May
10,000
600
June
12,000
770
July
16,000
1,000
Using the Method of Least Squares, calculate the fixed cost of leasing. Round the fixed cost to the nearest
cent.
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Transcribed Image Text:Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected as follows: Month Lease cost Machine hours April $15,000 800 May 10,000 600 June 12,000 770 July 16,000 1,000 Using the Method of Least Squares, calculate the fixed cost of leasing. Round the fixed cost to the nearest cent.
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