# Suppose you are an analyst for a company that produces - 94993

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## shri21

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Month Units of product 1 (x1) Units of product 2 (x2) Units of product 3 (x3) Units of product 4 (x4) Total production cost (y) 1 368 376 435 451 \$73,271 2 654 531 550 1264 \$136,260 3 287 519 404 612 \$83,189 4 74 676 426 571 \$71,316 5 315 790 174 629 \$79,429 6 463 468 570 900 \$100,897 7 369 624 327 894 \$85,651 8 434 796 455 599 \$99,197 9 260 586 428 1029 \$92,610 10 438 686 494 1020 \$106,545 11 329 734 484 974 \$102,187 12 375 464 358 935 \$86,182 13 303 576 381 987 \$85,200 14 198 283 280 684 \$64,319 15 451 604 512 928 \$116,988 16 349 618 425 1011 \$95,426 17 143 621 384 683 \$81,205 18 313 567 493 865 \$93,629 Suppose you are an analyst for a company that produces four products, and you are trying to decide how much of each product to produce next month. To model this decision problem, you need the unit variable production cost for each product. After some digging, you find the historical data on production levels and costs in the file P14_12.xlsx. Use these data to find estimates of the unit costs you need. You should also find an estimate of the fixed cost of production. Will this be of any use to you in deciding how much of each product to produce? Why or why not?
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