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Formulate the regression model

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Reference no: EM131279592

Dep. Var.: AVC

R-Square

F-Ratio

P-value on F

Obs.: 43

0.6316

55.91

0.0001

Variable

Para. Est.

Std. Err.

T-Ratio

P-value

Intercept

665.124

138.568

4.80

0.0002

Q

-0.16458

0.09738

-1.69

0.0925

Q2

0.00079

0.00028

2.82

0.0001

1: Formulate the regression model (AVC function) based on the estimates. If Flextronics produces the output level at 100, what is the estimated AVC?

2: At last production period, Flextronics discloses its total fixed cost (TFC) as $500,000, and its production level is 50. What is the Flextronics' total cost (TC)?

Reference no: EM131279592

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