Page 48 - BA2 Integrated Workbook - Student 2017
P. 48
Chapter 3
4.2 Using regression analysis
Using the data from the high-low method example we will calculate a (the fixed cost)
and b (the variable cost). The numbers in the calculations can get big so the figures
are shown in 000s.
Activity level Cost
2
x y x xy
Quarter 1 10 38.3 100 383
Quarter 2 12 42.7 144 512.4
Quarter 3 9 35.7 81 321.3
Quarter 4 14 47.2 196 660.8
–––– –––– –––– ––––––
45 163.9 521 1,877.5
–––– –––– –––– ––––––
40
