the fixed weekly expense of a coffee stand is 1100 and the variable cost of a cup 269641

Aug 29, 2021 | Uncategorized

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The fixed weekly expense of a coffee stand is $1100, and the variable cost of a cup of coffee is $0.26. Calculate fixed, variable, and total cost at volumes of 1800, 1900, and 2000 cups, and also calculate the average cost per cup.

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A truck incurs both fixed and variable costs. If the truck is driven 120,000 miles per year, its average cost is 11.6 cents per mile. If it is driven only 80,000 miles, average cost per mile is 13.6 cents. Estimate the variable and fixed components of the truck’s cost, and estimate the cost per mile if it was to be driven 100,000 miles.

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Month Number of X Rays Total Cost ($000)

Jan 6250 28

Feb 7000 29

Mar 5000 23

Apr 4250 20

May 4500 22

Jun 3000 17

Jul 3750 18

Aug 5500 24

Sept 5750 26

A Use the high low method to estimate the cost formula for X Rays.

B If you took 4600 X Rays, what would you estimate to be the cost?

C If a least squares regression line was in the form y = $6529 + $3.29X, what would have made this different from the equation you developed in (A)?

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2 3 The fixed weekly expense of a coffee stand is $1100, and the variable cost of a cup of coffee is $0.26. Calculate fixed, variable, and total cost at volumes of 1800, 1900, and 2000 cups, and also calculate the average cost per cup. 2 12 A truck incurs both fixed and variable costs. If the truck is driven 120,000 miles per year, its average cost is 11.6 cents per mile. If it is driven only 80,000 miles, average cost per mile is 13.6 cents. Estimate the variable and fixed components of the truck’s cost, and estimate the cost per mile if it was to be driven 100,000 miles. 2 13 Month Number of X Rays Total Cost ($000) Jan 6250 28 Feb 7000 29 Mar 5000 23 Apr 4250 20 May 4500 22 Jun 3000 17 Jul 3750 18 Aug 5500 24 Sept 5750 26 A Use the high low method to estimate the cost formula for X Rays. B If you took 4600 X Rays, what would you estimate to be the cost? C If a least squares regression line was in the form y = $6529 + $3.29X, what would have made this different from the equation you developed in (A)?

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