Peters Pots makes a large ceramic pot that it sells through a nationwide distribution channel. The following table details the sales and costs for the first seven months of this year.

REQUIRED:

a. Using the high- low method, calculate the variable and fixed costs of production for Peters Pots.

b. Using the scatter gram method, estimate the variable and fixed costs of production for Peters Pots.

c. Using least squares regression, calculate the variable and fixed costs of production for Peters Pots.

Transcribed Image Text:

Observation Number of Units (x) Manufacturing Cost (y) January 1,000 $40,100.00 February 2,500 $100,100.00 March 500 $20,100.00 April 1,000 $40,100.00 May 1,500 $60,100.00 June 1,200 $48,100.00 July 800 $32,100.00 Sum 8,500 $340,700.00