Below Are Cost and Activity Data for a Particular Cost

question 7

Essay

Below are cost and activity data for a particular cost over the last four periods.Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.

$\begin{array}{cc}&\text { Activity } & \text { Cost } \\\text { Period 1}&46 & \$ 292 \\\text {Period 2 }&40 & \$ 271 \\\text {Period 3 }&42 & \$ 279 \\\text {Period 4 }&41 & \$ 267\end{array}$

Required:
Using the least-squares regression method,estimate the cost formula for this cost.

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Definitions:

Limited-Service

Refers to businesses or offerings that provide a selective range of services as opposed to comprehensive, full-service options.

Merchant Wholesalers

Businesses that buy goods in large quantities from producers, store them, and then resell them to retailers or other businesses.

Wheel of Retailing

A theory that describes how retail outlets evolve over time, starting from low-end, gradually upscaling, and potentially becoming more conventional or full-service establishments.

Off-Price Retailing

A retail strategy selling branded goods at prices lower than the typical market price, often through buying overstocked or out-of-season items from manufacturers.