Question: Analyze cost behavior and estimate costs using regression analysis. Activity Levels Total Costs ($) Low Activity Level $50,000 High Activity Level $120,000 Number of Units

Analyze cost behavior and estimate costs using regression analysis.

Activity Levels

Total Costs ($)

Low Activity Level

$50,000

High Activity Level

$120,000

Number of Units Produced

8,000 units

Requirements:

Analyze the cost behavior using the high-low method and regression analysis.

Estimate the variable cost per unit and fixed cost component.

Discuss how changes in activity levels impact total costs and unit costs.

Provide strategic recommendations based on cost behavior analysis.

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