Question

muu uummy uie period 71. Temperance, Inc. is studying marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least-squares regression analysis: Variable cost per unit sold Total monthly fixed cost Scatter Diagram $6.50 $45,000 Regression Analysis $6.80 $42,500 Temperance is now preparing an estimate for monthly sales of 18,000 units. On the basis of the data presented, compute the most accurate sales forecast possible. A. $159,500. B. $162,000. C. $164,900. D. $167.400. O A 9 W

Answer 1

Answer :- Option C - 164,900

Compute the most accurate sales forecast possible:

Variable Cost per unit = $6.80

Number of units = 18,000

Total Variable Cost = 6.80 * 18,000 = $122,400

Total Fixed Costs = $42,500

Total Costs = $122,400+ $42,500= $164,900.