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.
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?