Question

AutoSave OF S U : Document2 sert Draw Design Layout References Mailings Review View Share Times New... 12 AA Aa A BIVX, X ADA Styles Styles Dictate Sens 21 Required information [The following information applies to the questions displayed below.) Odessa, Inc., manufactures one model of computer desk. The following data are a regarding units shipped and total shipping costs: ble Month Number of Units Shipped Total Shipping Cost January $3,100 February 3,700 March 2.550 April 3.900 1,850 1450 July 2.350 Required: 3. Using the high-low method, calculate Odessa's total fixed shipping costs and variable shipping cost per unit. 4. Perform a least squares regression analysis on Odessa's data 5. Using the regression output, create a linear equation ya x ) for estimating Odessa's shipping costs. Fixed Cost Variable Cost per Unit $30 Coefficients Intercept X Variable Total Shipping Cost - Number of Units Shipped Page 1 of 1 127 words English (United States MacBook Pro # 1 2 3 4 5 6 7 8

Answer 1

3. High low method
Variable Cost per unit = ($3700-2350) / (70-25) = $30 per unit
Fixed Cost = $3700 - 70x30 = $1600

4.

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.853797
R Square	0.72897
Adjusted R Square	0.674764
Standard Error	432.9844
Observations	7
ANOVA
	df	SS	MS	F	Significance F
Regression	1	2521194	2521194	13.44812	0.014486
Residual	5	937377.6	187475.5
Total	6	3458571
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	913.9175	588.1836	1.553796	0.180946	-598.057	2425.892	-598.057	2425.892
Number of units shipped	42.65464	11.63149	3.667168	0.014486	12.75494	72.55434	12.75494	72.55434

Intercept = $913.92
X Variable = $42.65 per unit

5. Total Shipping Cost = $913.92 + $42.65 x Number of units shipped