Find the price relative for each product.

Question

The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Cost Level of Activity (units Produced) July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Using the information above answer both questions below 1. Prepare the scatter diagram, clearly showing any outliers.2. Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)

Answer 1

Question

Chapter 20, Problem 18SE

a.

To determine

Find the price relative for each product.

b.

To determine

Find the weighted aggregate price index that reflects the shipping cost change over the four-year period.

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The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Cost Level of Activity (units Produced) July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Using the information above answer both questions below 1. Prepare the scatter diagram, clearly showing any outliers.2. Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)

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