Target Corporation reports that at an activity level of 7,600 units, its variable cost is $182,856 and

Question:

Target Corporation reports that at an activity level of 7,600 units, its variable cost is $182,856 and its fixed cost is $444,296. Target Corporations uses the least Squares Regression Equation in computing costs. That is, Y = a + bx, where Y is the total cost of units produced, a = the fixed cost, b = the variable cost, and X is the number of units produced.

1. What is the TOTAL cost of 7,600 units produced?

2. For an activity level of 7,600 units, what is the VARIABLE cost per unit?

3. For an activity level of 7,600 units, what is the fixed cost per unit?

4. What is the total variable cost of producing 8,000units?

5. What is the average fixed cost per unit of product?

6. What is the total cost of producing 8,000 UNITS?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...