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PROBLEM - Airline, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output:
Regression Statistics
Multiple R 0.7225
R Square 0.8500
Observations 30
Constant 38,000
Coefficient 5.75
Standard error 0.4641
Requirements -
1. What is Newport's total fixed cost?
2. What is Newport's variable cost per unit?
3. What total cost would Newport predict for a month in which they sold 5,000 units?
4. What proportion of variation in Newport's cost is explained by variation in production?
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