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Layla Limited incurred the following inspection costs for the last six months of 2019:
Month Units produced Costs (R)
July 10 900
August 15 1 100
September 8 750
October 18 1 300
November 12 1 000
December 9 820
The above cost behaviour is representative for the full year.
Required:
Question 1: Calculate the variable cost per unit and the fixed cost per month by using the Simple regression method, using the following formulas:
∑y = na + b∑x
∑xy = a∑x + b∑x²
Show all workings. Round your answers to two decimals.
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