Simple and Multiple Regression (Requires Computer Spreadsheet) (LO2, 3)

Kevin Miller is employed by a mail-order distributor and reconditions used desktop computers, broadband routers, and laser printers. Kevin is paid $12 per hour, plus an extra $6 per hour for work in excess of 40 hours per week. The distributor just announced plans to outsource all reconditioning work. Because the distributor is pleased with the quality of Kevin’s work, he has been asked to enter into a long-term contract to recondition used desktop computers at a rate of $40 per computer, plus all parts. The distributor also offered to provide all necessary equipment at a rate of $200 per month.

Kevin has been informed that he should plan on reconditioning as many computers as he can handle, up to a maximum of 20 per week.

Kevin has room in his basement to set up a work area, but he is unsure of the economics of accepting the contract, as opposed to working for a local Radio Stuff store at $11 per hour. Data related to the time spent and the number of units of each type of electronic equipment Kevin has reconditioned in recent weeks is as follows:

Laser Broadband Desktop Total Total Week Printers Routers Computers Units Hours ce eae 4 5 5 14 40 Die tor 0 i 6 ile 42 Bh ove lee 4 3 7 14 40 a Shortent ae 0 2 WZ 14 46 Bieeainatr. 11 6 4 21 48 Ooh: 5 8 3 16 44 V peoret 5 8 S 16 44 Berean 5 6 iS) 16 43 Orem rear 2 6 10 18 53 Ol Soha 8 4 6 18 46 HO valine nevero r. 160 446 Required Assuming he wants to work an average of 40 hours per week, what should Kevin do?

 (p. 77)