Exercise 5A-5 (Static) Least-Squares Regression [LO5-11]

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George Caloz & Frres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the companys products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks:

Week	Units			Total Etching Cost
1		4			$	18
2		3				17
3		8				25
4		6				20
5		7				24
6		2				16
		30			$	120

For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.

Exercise 5A-5 Part 3 (Static)

3. If the company processes five units next week, what would be the expected total etching cost?