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Hi/Low and Regression Forecasts with template

Please answer the attached questions, in a word document, using the attached excel template.

Hi/Low and Regression Models:

a. Complete the analysis (see Excel template)
b.
1) Anne asked specifically about the revenue and volume levels necessary to produce an operating income of $55,000 which you identified as: __________________ and _____________ (.50) each

High/Low
a) Breakeven $______________(.75)
b) Breakeven Units___________(.25)

Regression
a) Breakeven $______________(.75)
b) Breakeven Units____________(.25)

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Your tutorial shows you the high low and the regression method for analyzing the variable portion and the fixed portion of total ...

Solution Summary

Your tutorial shows you the high low and the regression method for analyzing the variable portion and the fixed portion of total costs. See the new tabs in Excel, one for regression and one for high-low. I added a graph to illustrate why these methods give you different answers for the cost behaviors. The table of profits at the various levels are completed for you (click in cells to see computations). I added a table to compute the units and dollars needed to achieve the target profit of $55,000 for both methods.

$2.19