10:58 GE 4G Sample Midterm - Read-only . . . Read Only - You can't save changes to this file. V V B C E G H J K ABC Company has collected the following data concerning its maintenance 9 costs for the past six months: 10 11 Month Units Produced Total Costs 12 January 8,000 32,000 13 February 32,000 48,000 14 March 36,000 55,000 15 April 22,000 38,000 16 May 40,000 65,000 17 June 38,000 62,000 18 19 Required: 20 a) Using the high-low method, compute the variable maintenance cost per unit 21 produced. (1 Mark) 22 23 24 25 26 27 28 29 30 31 32 b) Using the high-low method, compute the fixed maintenance cost. (1 Mark) 33 34 35 36 37 38 39 40 OO 41 42 43 c) Using the regression report below, what is the variable maintenance cost per 44 unit produced? (1 Mark) 45 46 Regression Statistics 47 Multiple R 0.984897158 48 R Square 0.970022412 49 Adjusted R Sql 0.962528015 50 Standard Error 2547.576845 51 Observations 6 52 53 ANOVA 54 df SS MS F nificance F 55 Regression 1 840039408.9 840039408.9 129.4330171 56 Residual 4 25960591.13 6490147.783 57 Total 866000000 58 59 Coefficients Standard Error t Stat P-value Lower 95.0% Upper 95% 60 Intercept 5408.866995 4055.100385 1.333842934 0.25313582 5849.89662 16667.63061 61 X Variable 1 1.438423645 0.126434116 11.37686324 0.000340421 1.087386263 1.789461028 62 63 64 d) Using the regression report, predict the company's total maintenance costs for 65 July if the company anticipates to produce 25,000 units. (1 Mark) 66 (Round to the nearest penny) 67 68 69 70 e) Using the high-low method, predict the company's total maintenance costs for 71 July if the company anticipates to produce 25,000 units. (1 Mark) 72 (Round to the nearest penny) 73 EL O O