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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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