Page 53 - BA2 Integrated Workbook STUDENT 2018
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Analysing and predicting costs
4.2 Using regression analysis
Using the data from the high-low method example we will calculate the fixed cost (a)
and the variable cost (b). The numbers in the calculations can get big so the figures
are shown in 000s.
Activity level Cost
(000s) ($000)
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
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45 163.9 521 1,877.5
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