Question: GHK Inc has datas below: Month 1 2 3 4 5 6 Cost elements 5. Depreciation office cost 6. Cost of outsourced services There

GHK Inc has datas below: Month 1 2 3 4 5 6

GHK Inc has datas below: Month 1 2 3 4 5 6 Cost elements 5. Depreciation office cost 6. Cost of outsourced services There are statistics on the cost of outsourced services as follows: 7 8 9 1. COGS 2. Sale commission 3. Advertising cost 4. Administrative cost Unit sold 4000 5000 6500 8000 7000 5500 5200 7300 6800 Cost method $14/unit 15% sale $25.000 $20.000 $8.000 ??? Cost of outsourced services 15.000 17.000 19.400 21.800 20.000 18.200 18.000 21.500 19.800 Require: 2.1. Determine the equation to predict the cost of outsourced services using the high-low method? 2.2. Determine the equation to predict the cost of outsourced services using the least square regression method? 2.3. Suppose the company expects to sell 7500 units in the next month at a selling price of $32/unit, calculate the variable cost per unit and net operating income?

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21 The equation for the highlow method would be Cost of outsourced services High cost of outsourced services Low cost of outsourced services High unit solo Low unit solo Unit solo Low cost of outsourc... View full answer

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