Methods & Calculations of Linear Regression: c(x)=64.80x+93.500

[HB09]

Hello! So I am working on a homework assignment and was doing great until I stumbled upon a part of the question that I have no resources available to help me figure it out! I am hoping someone can guide me here..

So the Question starts like this
Units Produces Total Cost
500 127,000
1000 154000
1500 196000
2000 221000
selling price is 85
and expected to sell 300 a month

I had to graph the data, use regression to fit the linear model,find the fixed and variable costs and find the equation for c(x)
I did all of these things
I have 93500 for the fixed cost and 64.80 for variable
c(x)=64.80x+93.500

NOW I need to find the equations for R(x), and P(x), find the break even point and a question that says "you have just sold your 2000th unit. How much longer until you break even) I am very stuck on how to come up with these answers! Any help would be greatly appreciated!

 

[tkhunny]

selling price is 85
and expected to sell 300 a month

It appears that you should use the last two bits of information to find R(x).

 

[Harry_the_cat]

Hello! So I am working on a homework assignment and was doing great until I stumbled upon a part of the question that I have no resources available to help me figure it out! I am hoping someone can guide me here..

So the Question starts like this
Units Produces Total Cost
500 127,000
1000 154000
1500 196000
2000 221000
selling price is 85
and expected to sell 300 a month

I had to graph the data, use regression to fit the linear model,find the fixed and variable costs and find the equation for c(x)
I did all of these things
I have 93500 for the fixed cost and 64.80 for variable
c(x)=64.80x+93.500

NOW I need to find the equations for R(x), and P(x), find the break even point and a question that says "you have just sold your 2000th unit. How much longer until you break even) I am very stuck on how to come up with these answers! Any help would be greatly appreciated!

Does R stand for revenue and P for profit? If so, think about how you would calculate your profit? (Imagine you have a lemonade stand!)

 

[stapel]

So the Question starts like this
Units Produces Total Cost
500 127,000
1000 154000
1500 196000
2000 221000
selling price is 85
and expected to sell 300 a month

Are the column headings meant to be "Units Produced" and "Total Cost"? So the table is meant to be as follows:

Units Produced	Total Cost
500	$127,000
1,000	$154,000
1,500	$196,000
2,000	$221,000

Also, is the selling price "$85 per unit", "$85 per hundred units", or something else? Also, if it is expected that only three hundred units will ever be sold in one month, why are you given the other data? Surely these reflect only "bad" months, when costs were overwhelming and sales came nowhere near covering cash-flow needs...?

I had to graph the data, use regression to fit the linear model,find the fixed and variable costs and find the equation for c(x)
I did all of these things
I have 93500 for the fixed cost and 64.80 for variable
c(x)=64.80x+93.500

How did you get this regression equation? For instance:

. . . . .C(500) = 64.80(500) + 93.5 = 32,493.5

...which is miles away from the known value. By doing the regression myself, it looks as though you switched units somewhere in the computations, perhaps by converting "Total Costs" to "in thousands". Did the instructions tell you to do this? If so, kindly please reply with all of the rest of the information for this exercise.

Thank you!