From the above data, estimate the maintenance costs for the month of July 2011 assuming the output was 1200 units b) Calculate the correlation co-efficient for the costs with the machine hours and the costs with the number of units c) Draw a scattergraph of the above data d) Explain why the actual costs for the month of July might be different from your estimate. Question 10 Fixed costs: ‘000 lek Cost of motor Car 1600 Trade in price after 2 years 240 Maintenance/service - every 6 months 10 Vehicle license – per annum 13 Variable costs: Petrol - per litre 160 (Average miles per litre – 10 miles) Other variable costs – per mile 15 Required a) From the above data prepare a schedule to be presented to a prospective taxi driver showing the - total variable cost and variable cost per mile - total fixed cost, and fixed cost per mile - total cost and total cost per mile for 5,000 miles, 10,000 miles, 15,000 miles and 30,000 miles p.a. b) The more miles you travel, the cheaper it becomes. Comment briefly on this statement Question 11 A company manufactures and sells clothes. You are required to identify the costs into one of the following eight categories.
- Fall '19
- Prime cost