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Hello, I need help with interpreting the data from the table below. The main question is what problems do you see with the Fixed Cost and Variablr Cost data? The explanantion should be with regard to high-low and regression method. I am not sure but is it normal to have VC with negative amount? Thank you very much!
| Column | Expense | FC | VC | R-sq |
| 1 | Salaries | $106,866 | -$ 110 | 4.10% |
| 2 | Vacation | $ 1,194 | S 1.42 | 0.20% |
| 3 | Advertising and Training | $ 24,348 | -$0.02 | 0% |
| 4 | Supply/Tools/Laundry | $ 8,269 | -$22.27 | 9.30% |
| 5 | Freight | $ 430.34 | $ 0.32 | 0.20% |
| 6 | Vehicles | $ 1,809 | $ 0.18 | 0.00% |
| 7 | Demonstrators | $ 1,305.00 | -$6.76 | 3.90% |
| 8 | Floor Planning | $ 80,537 | -$399.63 | 28.30% |
| Computed Total | $224,758 | -$537 | ||
| 9 | Total | $224,758 | -$537 | 24.70% |
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Question & Answer: Hello, I need help with interpreting the data from the table below. The main question is what problems do you see with the F…..
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A variable cost figure cannot be a negative logically, since a variable cost starts from zero and increase as the number of product increase.As a production volume cannot go to a negative so as the variable cost.
