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