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ASSIGNMENT CHAPTER $3-$ COST BEHAVIOUR $-$ PIotected VIEW

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o

B$14$

Can you predict total monthly operating costs if the club has $3,000$ members? Explain your answer

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$F$

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$1$

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$1$

$\backslash$table$[[$accurate predictions for next year.,TOTAL,AVERAGE$]]$

CALCULATE:

By looking at the Total Operating Costs and the Average Operating Costs per Member, can you tell whether the club's operating costs are variable, fixed, or mixed? Explain your

$1$ answer.

$2$ Use the high$-$low method to determine the club's monthly operating cost equation.

$3$ Using your answer from Requirement $2,$ predict total monthly operating costs if the club has $600$ members.

$4$ Can you predict total monthly operating costs if the club has $3,000$ members? Explain your answer.

$5$ Perform regression analysis using Microsoft Excel. What is the monthly operating cost equation? What is the R$-$square? Why is the cost equation different from that in