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The following table shows the number of toys produced and the cost incurred in JUMA Limited for the month of January 2017. Toys produced
The following table shows the number of toys produced and the cost incurred in JUMA Limited for the month of January 2017. Toys produced total cost GH 5 400 15 450 25 500 35 650 45 700 55 750 65 65 780 Required: Using least square regression method: i) Find the variable cost equation and the fixed cost equations of the company 9 marks ii) What is the total cost incurred in the production of 30 toys? 3marks iii) In the coming year, the company plans to increase their production level from 65 toys to 100 toys. What will be the fixed cost expected at this new level of production if management of the company will make all resources available provided workers are prepared to give of their best v) Comment on your answer in (iii) above 2marks. 2marks
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