Explore BrainMass

Cost versus volume

The Burlington Company has recorded the following costs for factory utilities at various volumes of production

Volume (000s) Total Factory Utilities Cos2ts
600 $700,000
400 $500,000
200 $300,000

Using a scattergraph plot, estimate the cost function for utilities costs.


Solution Preview

See Excel attachment for scatter-graph plot.

The cost function is: Cost = a * Volume + b
From the scatter ...

Solution Summary

This solution analyzes the relation between cost and volume for a company