TechPro Electronics Cost Production Functions

You are a financial analyst at "TechPro Electronics." The company produces a variety of electronic gadgets, including smartphones, tablets, and laptops. Your task is to analyze the cost production function for the smartphone division.

TechPro Electronics has been in the market for several years and has gained a significant market share in the smartphone industry. The smartphone division uses various inputs such as labor, raw materials, and capital to produce smartphones. The company is experiencing increased competition, and it is essential to understand the cost structure to remain competitive.

Objectives

$1.$ Develop a cost production function for the smartphone division.

$2.$ Analyze the cost structure and identify the key cost drivers.

$3.$ Provide recommendations on cost optimization strategies.

Data Available

Historical production data for smartphones, including the number of units produced. $($see excel file$)$

In addition, the TechPro Finance Department provides you with labor costs, raw material costs, and data on demand.

Tasks

$1.$ Calculate Total Cost Production Function using regression analysis

$2.$ Identify the coefficients and interpret their economic significance.

$3.$ Analyze the impact of changes in input prices, and technology advancements on the cost production function.

$4.$ Propose strategies to optimize costs while maintaining product quality.

$5.$ Discuss how changes in input prices and production volume affect costs.

Production Period Units Produced Labor Costs $($$$)$ Raw Material Costs $($$$)$

$15,00025,00050,000$

$26,50027,00052,500$

$37,80029,00055,000$

$48,20031,00056,500$

$59,00033,00058,000$

$69,50035,00059,500$

$710,20036,50060,800$

$810,80038,00062,000$

$911,50039,50063,500$

$1012,20041,00065,000$

$1112,80042,50066,200$

$1213,50044,00068,000$

$1314,20045,50069,500$

$1414,80047,00070,800$

$1515,50048,50072,000$

$1616,20050,00073,500$

$1716,80051,50075,000$

$1817,50053,00076,500$

$1918,20054,50077,800$

$2018,80056,00079,000$

$2119,50057,50080,500$

$2220,20059,00081,800$

$2320,80060,50083,000$

$2421,50062,00084,500$

$2522,20063,50085,800$

$2622,80065,00087,000$

$2723,50066,50088,500$

$2824,20068,00089,800$

$2924,80069,50091,000$

$3025,50071,00092,500$