Binsey Ltd uses regression analysis to forecast future monthly costs. Using historic
information the accountant has produced the following equation which will be used
to predict future monthly costs:
TC = 4Q + 600
Where Q is the number of units produced each month.
Which of the following statements is correct?
A Variable costs = $600 per unit, Fixed costs = $400 per month
B Annual fixed costs = $48,000
C Annual fixed costs = $7,200
D Variable costs = $40 per unit, Fixed costs = $7,200 per month
information the accountant has produced the following equation which will be used
to predict future monthly costs:
TC = 4Q + 600
Where Q is the number of units produced each month.
Which of the following statements is correct?
A Variable costs = $600 per unit, Fixed costs = $400 per month
B Annual fixed costs = $48,000
C Annual fixed costs = $7,200
D Variable costs = $40 per unit, Fixed costs = $7,200 per month
