Comments

  1. avatar says

    Hello, Mr. Moffat

    I am trying to understand as to how you came across the way to get back the variable cost (b) and the fixed cost (a) back into its actual cost, as in if we never did the substituting to make the arithmetic quicker. Just to see if I was right, is this because if I transposed the formulae “y = a + bx” to suit ‘a’ and ‘b’, as in: a= y – b/x and b = y/x – a,
    - in a’s case you would only have to multiply by 1000 because the ‘y’ costs in the formulae were not being divided by the ‘x’ units.
    -and in b’s case you would have to multiply by 1000 (y costs) and also divide by 100 (x units) because ‘y’ was being divided by ‘x’. ?

Leave a Reply