Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Alexis runs an organic vegetable delivery service with a fleet of delivery vans. He wants to determine how much of his monthly delivery vehicle

image text in transcribed

3. Alexis runs an organic vegetable delivery service with a fleet of delivery vans. He wants to determine how much of his monthly delivery vehicle cost is based on kilometres driven and how much is based on fixed costs. Using kilometres driven as the cost driver, he ran a regression analysis, which gave the following results OUTPUT Multiple R R Square Adjusted R Square Standard Error 0.969681546 936964651 403.2661716 20 ANOVA MS 1 47240500.95 47240501 283.4182 184E-12 Residual 13 3000262.803 166681.3 Total 19 50240763.75 Upper 95% Lower 95.0% Upper Error t Stot P-value Lower 95% 95.0% 10469.66 601.8504 4549.9 2.210012 6.39E-21 9641.008 10469.66 9641.008 X Variable 1 5.0757576 191.25 2.797782 184E-12 468.3011 601.8504 468.3011 Alexis estimates that, for the next month, his vans will travel 20,000 kilometres. What are the total fixed and variable delivery costs estimated to be for the next month, based on the regression analysis output? a) $66,011 b) $101,500 c) $106,050 d) $111,570

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Jawahar Lal, Seema Srivastav

6th Edition

9353168384, 978-9353168384

More Books

Students also viewed these Accounting questions