Reference no: EM131538874

Question: 1. Which of the following methods is likely to yield the most precise estimated line of cost behavior?

(a) High-low,

(b) least-squares regression, or

(c) scatter diagram.

2. Cinquante Company expects to sell 100,000 units of its product next year, which would generate total sales of $12 million. Management predicts that pretax net income for next year will be $3,000,000 and that the contribution margin per unit will be $40. Use this information to compute next year's total expected

(a) variable costs and

(b) fixed costs.