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Odino chemicals limited are aware that its power costs are semi variable cost and over the last six months these costs have shown the following
Odino chemicals limited are aware that its power costs are semi variable cost and over the last six months these costs have shown the following relationship with a standard measure of output.
Month
Output (standard units)
Total power costs 000
months output total cost (000)
1 12. 6.2
2. 18. 8.0
3 19. 8.6
4. 20. 10.4
5. 24. 10.2
6. 30. 12.4
RequiredUsing the method of least squares, determine on appropriate linear relationship
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