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Estimate fixed and variable costs using regression analysis. Activity Levels Total Costs ($) Low Activity Level $50,000 High Activity Level $80,000 Number of Units Produced

Estimate fixed and variable costs using regression analysis.

Activity Levels

Total Costs ($)

Low Activity Level

$50,000

High Activity Level

$80,000

Number of Units Produced

10,000 units

Requirements:

Estimate the variable cost per unit and fixed cost using regression analysis.

Predict total costs at different activity levels.

Discuss the advantages and limitations of using regression analysis for cost estimation.

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