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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Regression analysis
If TC = 4Q 60 where Q is the no of units produced per month and TC is total cost in a month which is correct. ?
A. VC = 600 /unit , FC =4 per month
B. Annual fixed cost = 28800
C.annual fixed cost = 7200
D. Variable cost = 4 / unit , FC = 7200/ month
You have not typed the question correctly.
TC = 4Q 60 does not make any sense.
I am sorry .. Its
TC = 4Q + 600
In that case the variable cost is $4 per unit and the fixed cost is 600 a month (therefore 7200 a year).
Have you watched the lectures on regression analysis?