Essay
The facility manager of Tovar Corporation asked the systems analyst for information to help in forecasting handling costs.The following printout was generated using the least squares regression method.
| Fixed cost | $2,550 |
| Variable cost per unit | $ 1.85 |
| Activity variable | units of production volume |
a.Using the information from the print out, develop a cost tunction that can be used to estumate handing costs at different voluine levels
b. Estimate handling costs if expected procluction for next month is 20,000 units.
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Correct Answer:
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b.
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