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1.Your boss would like you to estimate the fixed and variable components of a particular cost. Actual data for this cost over four recent periods appear below. Using the least-squares regression method, what is the cost formula for this cost?

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		Y = $156.64 + $9.20X
		Y = $0.00 + $16.01X
		Y = $164.54 + $8.86X
		Y = $169.97 + $6.10X 2. A manufacturer of tiling grout has supplied the following data: The company's break-even in unit sales is closest to: Answer 272,308 98,333 92,055 60,488 3 Supply costs at Rupard Corporation's chain of gyms are listed below: Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to: Answer $0.76 per client-visit; $18,152 per month $1.31 per client-visit; $10,462 per month $2.08 per client-visit; $28,489 per month $0.77 per client-visit; $17,952 per month 4. A partial listing of costs incurred at Peggs Corporation during September appears below: The total of the manufacturing overhead costs listed above for September is: Answer $71,000 $351,000 $669,000 $40,000 5. Ringstaff Corporation produces and sells a single product. Data concerning that product appear below: The company is currently selling 7,000 units per month. Fixed expenses are $615,000 per month. The marketing manager believes that a $21,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Answer increase of $600 decrease of $600 decrease of $21,000 increase of $21,600 7. Dorian Company produces and sells a single product. The product sells for $60 per unit and has a contribution margin ratio of 40%. The company's monthly fixed expenses are $28,800. If the selling price is reduced by 5%, variable expenses reduced by $1.00, and fixed expenses increased to a total of $38,400, how many units would need to be sold to earn a net operating income of $21,000? Answer 1,000 2,700 1,700 2,950 8. The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. The net operating income for the year (in thousands of dollars) was: Answer $410 $110 $40 $180

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