Reference no: EM132471897
Objective:
Question 1) Demonstrate understanding of Cost Estimation, Cost-Volume-Profit, and Short-term Decision-making
Deliverables:
Question 2) Using the data and template provided, use the following two methods to make linear cost estimation equation (Total Cost = Unit Variable Cost x Units Sold + Total Fixed Cost):
a. How do you find a High-Low Method
b. How do you find a Linear Regression Method
Question 3) Assume that a company has forecasted 5,800 units sold, has an average selling price of $25.00 per unit, unit variable cost of $10.00 per unit, and a total fixed cost equal to $84,000. Using the template provided, perform the following analyses:
b. how do you find the Break-even Sales Volume
c. how do you find this based on a target profit equal to $6,000