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STAT 201 Saudi Electronic University Variable Cost per Unit Exercises

Question Description

The purpose of this assignment is to give you a chance to share your solutions with your classmates, and to see different ways for solving the same problems in order to expand your knowledge and sharpen your skills.


Action Items:

Solve the following questions:

  1. A company buys, sells, and repairs old computers. Rebuilt computers sell for $1000 per unit. Fixed cost of equipment to rebuild computers is $16,000. Variable cost for repair material is $600 per unit. What is the equation that represent this situation?

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  1. A company buys, sells, and repairs old computers. Rebuilt computers sell for $1000 per unit. Fixed cost of equipment to rebuild computers is $16,000. Variable cost for repair material is $600 per unit. If Company sells 40 Computers, what will be the total expenses?

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  1. The following table shows the number of Motor registrations in a certain territory and the sales of Motor tyres by a firm in that territory,

Motor Registrations(x)

Number of Tyres sold(y)

600

1250

630

1100

720

1300

750

1350

800

1500

then the regression equation to estimate the sale of tyres when the motor registration is known is given by

  1. y = 1.4928x + 255.04
  2. y = 2.4444x + 355.09
  3. y = 3.4229x + 155.04
  4. y = 5.5674x + 786.09

Submission Instructions:

  • First, this is a discussion questions not graded questions, which means I am NOT looking for a perfect answer. I am interested in seeing your way of solving and discussing the problems.
  • Write down your answers and be willing to discuss them with your classmates once they have questions about them
  • You are allowed to comment and discuss your classmate’s solutions and ask them if you have any question.
  • The deadline for this assignment is on Saturday 24/04/2021 at 11:00 PM.
  • This assignment counts for 9 marks from the total grade of the course.

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