Sabey Sdn Bhad has the following data for its manufacturing sector. The cost structure for the past 5 month were as follows.
Here is a high degree of correlation between output and input.
You are given the following information;
|
Months.
|
Output (units)
|
Costs (RM)
|
|
|
X
|
Y
|
|
Jan
|
17,000
|
87,000
|
|
Feb
|
25,000
|
115,000
|
|
Mar
|
16,000
|
81,600
|
|
Apr
|
24,000
|
110,000
|
|
May
|
30,000
|
230,000
|
|
|
|
|
You are required to use both H and L method and also Least Square method
To calculate the Fixed cost and variable cost per unit.
To formulate an equation using both method.
If the output rises to 40,000 what is the likely costs?
What is the value of R square, and how would you explain that the value of Y is influenced by the value of .
What do you mean by the high level of correlation between X and Y.