Question: Use simple linear regression, with total cost as the dependent variable ( y ) and volume as the independent variable ( x ) . The

Use simple linear regression, with total cost as the dependent variable (y) and volume as the independent variable (x). The model y = b0+ b1x will give you estimates of b1= the per unit variable cost and b0= annual fixed cost. Round the fixed cost estimate to the nearest dollar and the variable cost estimate to the nearest cent.

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