This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: variable costs. The high point of activity is 75,000 gallons and the low point is 32,000 gallons. The variable cost per unit is estimated to be $0.163. It was calculated by dividing $7,000 ($20,000 – $13,000) by 43,000 (75,000 – 32,000) gallons of water. Least-squares regression analysis . The least-squares regression analysis is a statistical method used to calculate variable costs. It requires a computer spreadsheet program (for example, Excel) or calculator and uses all points of data instead of just two points like the high-low method....
View Full Document
- Spring '09
- variable costs., highlow method, Leastsquares regression, Leastsquares regression analysis., leastsquares regression analysis