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# The following information pertains to L & S, Inc. a manufacturer of plastic piping.Number ofCost ...

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The following information pertains to L & S, Inc. a manufacturer of plastic piping.

Number of   Cost of
pipes    shipping
Quarter   shipped   department
Fourth 2003   450   \$35,450
First 2004   675   63,950
Second 2004   1,000   79,345
Third 2004   980   72,120
Fourth 2004   545   45,375
A regression analysis on this information yields the following output:

SUMMARY OUTPUT

Regression Statistics
Observations   5

Coefficients
Intercept   8025.80024
X Variable 1   70.1673969

REQUIRED:
Using the regression output, determine the following:

a.)   The regression equation.
b.)   The variable cost per shipped unit.
c.)   The fixed cost of operating the shipping department for one year.
d.)   What is the estimated cost of operating the shipping department in 2005 assuming that the number of shipped units will increase by 30% from the previous year.
Textbook
 Survey of Accounting: Making Sense of Business Edition: 1st Author: Terrell
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2 years ago
 Wow!
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 Alright!