Descoteaux Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:
A)$9.87
B)$14.84
C)$9.26
D)$9.97

Question

Descoteaux Inc.'s inspection costs are listed below:  Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:
A)$9.87 
B)$14.84 
C)$9.26 
D)$9.97

Quizplus · Accepted Answer

Using Microsoft Excel functions,the solution is:
Variable cost per unit produced = Slope = $9.97