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2 years ago
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:
Read 45 times
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wrote...
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2 years ago
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 a.)   TC = $8,025.80024 + ($70.1673969 × units sold)
b.)   $70.1673969
c.)   $8,025.80024
d.)   TC = $299,922 (rounded)
   TC = $8,025.80024 + ($70.1673969 × (3,200 × 1.30)
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wrote...
2 years ago
Wow!
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2 years ago
Alright!
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