Task 4 - Linear Regression

robertk568

Hi,

Can anyone explain how they worked out the answer to the following please? (I have attached Question and answer).

Thanks

Pian32

So you're using a linear regression line for the sales. For the first one you fill in this will be Y=345-20*7 = 205 for all the other quarters in this column you just decrease X by 1 which decreases Y by 20. 185,165,145.

The next column is the units times the sale price.

The variable cost is units times the variable cost (£100 per unit)

The contribution is the Revenue - Variable Cost