Question
Question 1: a. How much is the breakeven point in value for the year using the High and Low method and assuming that the 'volume
Question 1:
a. How much is the breakeven point in value for the year using the High and Low method and assuming that the 'volume of productions is the only relevant cost driver?
b. How much is the breakeven point in value for the year using a single regression model and assuming that the 'volume of productions is the only relevant cost driver?
c. How much is the total production cost for the year if you want to produce the current volume and use your best single cost function (based on regression analyses)?
Please show all working and also use the regression method unless it explicitly asks to use the High-Low method. Unable to attach excel to the question so have copied and pasted the table to the question.
Week | Volume | Mat A (kg) | Mat B (kg) | D Lab Hrs | Mach Hrs | Total Costs | Sale Value |
1 | 590000 | 46 | 52 | 110 | 69 | 920000 | 3540000 |
2 | 283000 | 20 | 28 | 56 | 35 | 469500 | 1698000 |
3 | 618000 | 48 | 58 | 116 | 74 | 972000 | 3708000 |
4 | 207000 | 18 | 21 | 42 | 27 | 355500 | 1242000 |
5 | 165000 | 15 | 17 | 35 | 22 | 292500 | 990000 |
6 | 537000 | 42 | 51 | 101 | 65 | 850500 | 3222000 |
7 | 662000 | 46 | 55 | 119 | 73 | 1000000 | 3972000 |
8 | 310000 | 27 | 32 | 64 | 41 | 540000 | 1860000 |
9 | 482000 | 38 | 46 | 91 | 58 | 768000 | 2892000 |
10 | 279000 | 23 | 27 | 55 | 35 | 460000 | 1674000 |
11 | 256000 | 22 | 27 | 54 | 34 | 450000 | 1536000 |
12 | 224000 | 19 | 23 | 45 | 29 | 381000 | 1344000 |
13 | 504000 | 42 | 48 | 95 | 60 | 801000 | 3024000 |
14 | 483000 | 38 | 46 | 92 | 50 | 768500 | 2898000 |
15 | 537000 | 42 | 51 | 94 | 62 | 850500 | 3222000 |
16 | 528000 | 42 | 53 | 100 | 65 | 837000 | 3168000 |
17 | 416000 | 33 | 40 | 80 | 51 | 669000 | 2496000 |
18 | 328000 | 26 | 36 | 63 | 42 | 527000 | 1968000 |
19 | 612000 | 48 | 57 | 99 | 68 | 963000 | 3672000 |
20 | 352000 | 32 | 34 | 68 | 45 | 573000 | 2112000 |
21 | 629000 | 49 | 59 | 118 | 75 | 988500 | 3774000 |
22 | 188000 | 16 | 19 | 39 | 25 | 327000 | 1128000 |
23 | 560000 | 44 | 53 | 98 | 65 | 885000 | 3360000 |
24 | 385000 | 31 | 37 | 74 | 47 | 622500 | 2310000 |
25 | 375000 | 31 | 36 | 72 | 47 | 607500 | 225000 |
26 | 421000 | 32 | 39 | 77 | 49 | 646500 | 2526000 |
27 | 497000 | 39 | 44 | 94 | 59 | 790500 | 2982000 |
28 | 403000 | 32 | 39 | 77 | 50 | 649500 | 2418000 |
29 | 293000 | 24 | 29 | 58 | 37 | 484500 | 1758000 |
30 | 285000 | 23 | 28 | 56 | 36 | 472500 | 1710000 |
31 | 499000 | 36 | 47 | 95 | 59 | 793500 | 2994000 |
32 | 574000 | 45 | 54 | 99 | 66 | 906000 | 3444000 |
33 | 183000 | 18 | 22 | 38 | 26 | 319500 | 1098000 |
34 | 339000 | 27 | 33 | 66 | 46 | 553500 | 2034000 |
35 | 233000 | 20 | 23 | 47 | 34 | 394500 | 1398000 |
36 | 436000 | 35 | 42 | 83 | 53 | 699000 | 2616000 |
37 | 329000 | 28 | 33 | 67 | 42 | 558500 | 1974000 |
38 | 382000 | 31 | 37 | 74 | 43 | 618000 | 2292000 |
39 | 396000 | 32 | 38 | 76 | 49 | 639000 | 2376000 |
40 | 544000 | 40 | 51 | 90 | 55 | 861000 | 3264000 |
41 | 318000 | 26 | 31 | 62 | 40 | 522000 | 1908000 |
42 | 248000 | 21 | 25 | 47 | 31 | 417000 | 1488000 |
43 | 520000 | 41 | 50 | 99 | 64 | 835000 | 3120000 |
44 | 360000 | 29 | 35 | 70 | 45 | 585000 | 2160000 |
45 | 432000 | 37 | 41 | 83 | 50 | 693000 | 2592000 |
46 | 247000 | 21 | 25 | 51 | 32 | 425500 | 1482000 |
47 | 452000 | 32 | 40 | 86 | 53 | 723000 | 2712000 |
48 | 449000 | 36 | 43 | 86 | 53 | 718500 | 2694000 |
TOTAL | 19350000 | 1543 | 1855 | 3661 | 2336 | 31183500 | 114075000 |
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