Chapter 6 Redaction.pdf - E6-28 Month January February March April May June July August September October November December X-Axis Diagnostic Test

Chapter 6 Redaction.pdf - E6-28 Month January February...

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E6-28 X-Axis Y-Axis Diagnostic Test Completed Cost January 3050 61000 February 4500 74500 March 7100 99000 April 6200 95600 May 4700 74800 June 5900 89000 July 6000 91000 August 6100 90000 September 5300 87000 October 4900 76200 November 4800 78100 December 5050 80700 Find Variable Cost from Y = aX + b Fixed Cost = $32,000 (Y-Axis Cross) Use Condition of January (3050, 61000) 61,000 = 3,050a + 32,000 a = (61,000 - 32,000)/3,050 a = 9.5082 Y = 9.5082X + 32,000 Summary Fixed Cost are $32,000 and Variable Cost are $9.5082 per Diagnostic Test Month 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 110000 0 1000 2000 3000 4000 5000 6000 7000 8000 Cost Diagnostic Tests Completed Cost Fixed Cost = $32,000
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E6-29
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E6-33 X-Axis Y-Axis Number of Passengers Cost on Board Flight Service January 16000 18000 February 17000 18000 March 16000 19000 April 18000 20000 May 15000 18000 June 17000 19000 Summary Equation of Cost y = 0.544X + 9,666.7 Month y = 0.5455x + 9666.7 R² = 0.4909 17500 18000 18500 19000 19500 20000 20500 14500 15000 15500 16000 16500 17000 17500 18000 18500 Cost on Board Flight Service Number of Passengers Cost Behavior of Airline
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E6-34 Month X-Axis Y-Axis Total Hours of Operation Total Utility Cost January 550 1620 February 600 1700 March 700 1900 April 500 1600 May 450 1350 June 400 1300 1) High-Low Method X-Axis Y-Axis Total Hours of Operation Total Utility Cost January 550 1620 High February 600 1700 March 700 1900 April 500 1600 May 450 1350 June 400 1300 Low Hours Cost High Point (January) 550
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