Q3. What is regression analysis and how does it help in estimating a cost function? Interpret your results with a numerical example.

Q5. The following information is related to CTH Corporation which manufactures a single product: (2 Marks)

Selling price per unit: SAR 800

Variable cost per unit: SAR 240

Total fixed cost: SAR 400,000

You are required to calculate:

a) Contribution margin per unit and contribution margin ratio.

b) The break-even point in units and break-even point is sales value SAR.

c) Pretax profit of the company if it sells 1,400 units of the product.

d) The number of units required to sell to reach a target pretax profit of SAR 200,000?

(Please give a new answer that did not exist before)

Q4. A plastic product is manufactured by SLT Company. For total costs, the company estimates the cost function. The number of units is the cost driver. The following details were gathered: (2 Marks) Month March April May June July August September October Units 4,370 4,680 5,000 5,300 5,600 5,900 3,400 4,100 Total Cost (SAR) 44,300 44,600 45,000 45,400 47,500 57,500 40,000 40,625 Use the high-low analysis method and answer the following: a) Calculate Variable costs and fixed costs. b) Determine the cost function