Lecture 3B Assignments

1. Name five cost drivers for machining a part and describe why they are cost drivers.2. The figure shows an example of a cost graph. In the table, variable X is units and variable Y is

cost. Use a regression analysis to obtain a best-fit line that will minimize the difference between the line and the given data points.

X Y 50,000 500,000 10,000 71,000

100,000 500,000 1,000,000 4,000,000

15,000 135,000 500,000 3,000,000 350,000 1,050,000 800,000 2,400,000