1. You have applied least square regression model to classify the fixed and variable elements of a mixed cost.You input the data into Excel and found the following equation:

y = 4.6x + 850

Based on the above equation, what is the fixed cost?

2. You have applied least square regression model to classify the fixed and variable elements of a mixed cost.You input the data into Excel and found the following equation:

y = 120x + 10,800

based on the above equation, what is the total variable cost if 50 units were produced?

3. You have an on-line bakery shop and sell only one product - party cheese cake.

Given:

Fixed cost = $100,000

Variable cost = $50

Price = $250

Target profit = $20,000

How many cheese cakes do you need to sell to obtain the target profit?