Newport,Inc

question 92

Essay

Newport,Inc.used Excel to run a least-squares regression analysis,which resulted in the following output:
a.What is Newport's total fixed cost?
b.What is Newport's variable cost per unit?
c.What total cost would Newport predict for a month in which they sold 5,000 units?
d.What proportion of variation in Newport's cost is explained by variation in production?

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Definitions:

Operating Leverage Factor

A measure that assesses the degree to which a company can increase operating income by increasing revenue, highlighting the fixed versus variable costs structure.

Sales Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

Profit Increase

The growth in profit from one period to another, often measured as a percentage increase, indicating the company's improved financial performance.

Cost Volume Profit Analysis

An accounting method used to determine the breakeven point of sales and to estimate the effect of changes in costs and volume on a company's profit.