Milktopia Inc. produces and sells milk flavored bubble gum. Over the last five months, Milktopia had...

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Milktopia Inc. produces and sells milk flavored bubble gum. Over the last five months, Milktopia had the following production costs and production volume. Costs P6,000 6,659 8,370 8,800 8,050 Month March April May June July Volume (in cases) 12 14 18 19 17 Required: (1) Determine the variable cost per unit and fixed cost using (a) high-low method, and (b) least squares method. Express your answer in this format Y = a + bx where a is the fixed cost and b is the variable cost per unit. (2) Use your answers in (1) to determine the estimated costs when producing 22 cases using (a) high-low method and (b) least square method. Milktopia Inc. produces and sells milk flavored bubble gum. Over the last five months, Milktopia had the following production costs and production volume. Costs P6,000 6,659 8,370 8,800 8,050 Month March April May June July Volume (in cases) 12 14 18 19 17 Required: (1) Determine the variable cost per unit and fixed cost using (a) high-low method, and (b) least squares method. Express your answer in this format Y = a + bx where a is the fixed cost and b is the variable cost per unit. (2) Use your answers in (1) to determine the estimated costs when producing 22 cases using (a) high-low method and (b) least square method.

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To determine the variable cost per unit and fixed cost using both the highlow method and the least squares method well start by calculating the variab... View the full answer