a) Complete the chart, showing manufacturing cost at various levels of production for Company X Volume (units) 10,000 20,000 30,000 40,000 Cost A $25,000 $25,000 $25,000 Cost B $25,000 $50,000 $100,000 Cost C $33,000 $48,000 $78,000 Unit cost $8 30 b) What pattern do you observe in the behavior of unit cost Explain briefly why this occurs c) Develop an equation in the form of Y a bx to forecast total manufacturing cost Use this equation to forecast total costs at a level of 70,000 units d) Identify one reason why your forecast in c) may be unreliable

Question: a) Complete the chart, showing manufacturing cost at various levels of production for Company X Volume (units) 10,000 20,000 30,000 40,000 Cost A $25,000 $25,000

a)	Complete the chart, showing manufacturing cost at various levels of production for Company X

	Volume (units)	10,000	20,000	30,000	40,000
	Cost A	$25,000	$25,000		$25,000
	Cost B	$25,000	$50,000		$100,000
	Cost C	$33,000	$48,000		$78,000

	Unit cost	$8.30

b)	What pattern do you observe in the behavior of unit cost? Explain briefly why this occurs.

c)	Develop an equation in the form of Y = a +bx to forecast total manufacturing cost. Use this equation to forecast total costs at a level of 70,000 units.

d)	Identify one reason why your forecast in c) may be unreliable.

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