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Which of the methods below is the most subjective in determining fixed and varia

ID: 2539607 • Letter: W

Question

Which of the methods below is the most subjective in determining fixed and variable costs from multiple data points? visual fit high-low least-squares regressiorn All of the above methods involve the same amount of subjectivity. D Question 6 1 pts Based on the following information, what is the total contribution margin for the Rock Lobster Pizzaria? Pizzas sold during the period Selling price per pizza Variable cost per pizza: 80,000 $14.00 Production $6.00 3.00 Selling & administrative Fixed costs: $100.000 per year 20,000 per year Selling & administrative ) Prtsen F6 17 Home 5 6 7 8

Explanation / Answer

Even given options are used to calculate fixed and variable cost, but regression is most subjective accurate method as it considers all data points to create line.

Hence, 3rd option is correct and remaining options are incorrect.

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