Read and comprehend the Situations A and B and kindly answer the following:

(Please provide a step-by-step solution on a separate sheet of paper for me to compare our answers. Thanks!)

For Situation A:

Is the curve linear?

Multiple choice:

The monthly production costs can be expressed as

a. y = a + bx

b. y = b + ax

c. y = ax + b

d. x = a + by

Using the least squares method, the variable production cost per unit is approximately:

a. 5

b. 10

c. 0.27

d. 3.74

Using the least squares method, the monthly fixed production cost is approximately:

a. 1,500

b. 18,000

c. 4,350

d. 52,200

If the high-low points method is used, the results when compared with those under the method of

least squares, are

a. Variable cost per unit-Equal; Total Fixed Costs-Equal

b. Variable cost per unit-Higher by 1.26; Total Fixed Costs-Lower by 2,850

c. Variable cost per unit-Lower by 1.26; Total Fixed Costs-Lower by 2,850

d. Variable cost per unit-Higher by 5; Total Fixed Costs-Lower by 1,500

For Situation B:

Multiple choice:

For Ms new flashlight, total prime costs amount to:

a. 118

b. 167

c. 146

d. 107

The difference between the flashlights suggested selling price of Php 200 and the total cost of

Php 167 represent each flashlights

a. Gross profit

b. Contribution margin

c. Net profit

d. Fixed cost

The total overhead cost of Php 49 per unit is a

a. Prime cost

b. Variable cost

c. Mixed cost

d. Fixed cost

The total research and development cost of Php 200,000 incurred to develop the new product is

a(n)

a. Relevant cost

b. Sunk cost

c. Avoidable cost

d. Postponable cost

The costs included in Ms fixed overhead are

a. Prime costs

b. Discretionary cost

c. Committed cost

d. Variable costs

The planned spending on promotion and advertising for the flashlight is a

a. Variable cost

b. Discretionary cost

c. Sunk cost

d. Past cost

The least exact method for separating the variable and fixed cost components of a mixed cost is

a. Matrix algebra

b. The high-low method

c. The least squares method

d. Computer simulation

B Company produces and sells rattan baskets. The number of units produced and the corresponding total production costs for six months, which are representatives for the year, are as follows: Based on the given information and using the least squares method on computation, select the best answer for each question, where: y= total monthly production costs x= number of units produced per month a= fixed production cost per month b= variable production cost per unit n= number of months = summation M Corporation's Research and Development Department was able to develop a new product- a flashlight powered by solar energy. After reviewing the data prepared by the company's controller, M's management is confident that the new product will contribute profit to the company. The data prepared by the controller are as follows: The total research and development costs incurred to develop the new product amounted to Php 200,000. The company is planning to spend half of this amount for promotion and advertising. The company's fixed overhead includes rent, equipment depreciation, and salaries of factory supervisors