Alice Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. Assume that Alice's Flower Power does a regression analysis on the next year's data using Microsoft Excel. The output generated by Excel is as follows: Click the loon to view the regression analysis.) Requirements 1. Determine the firm's cost equation (use the output from the Excel regression) 2. Determine the R-square (use the output from the Excel regression). What does Flower Power's R-square indicate? 3. Predict van operating costs at a volume of 16,000 km Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Round your answers to the nearest cont.) QUOSLIOLI 7 of 7 (6 complete) and accogedogovorba web The businece ic. owned b olonondator and nated * Data Table Precious Pets Income Statement Year Ended December 31 Sales revenue 987,000 (665,000) 322,000 Cost of goods sold Gross profit Operating expenses: Selling and marketing expenses Website maintenance expenses Other operating expenses Total operating expenses 61,000 56,000 17,000 (134,000) 188,000 Operating income Print Done ck Check Answer. Clear All Alice Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. Assume that Alice's Flower Power does a regression analysis on the next year's data using Microsoft Excel. The output generated by Excel is as follows: Click the loon to view the regression analysis.) Requirements 1. Determine the firm's cost equation (use the output from the Excel regression) 2. Determine the R-square (use the output from the Excel regression). What does Flower Power's R-square indicate? 3. Predict van operating costs at a volume of 16,000 km Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Round your answers to the nearest cont.) QUOSLIOLI 7 of 7 (6 complete) and accogedogovorba web The businece ic. owned b olonondator and nated * Data Table Precious Pets Income Statement Year Ended December 31 Sales revenue 987,000 (665,000) 322,000 Cost of goods sold Gross profit Operating expenses: Selling and marketing expenses Website maintenance expenses Other operating expenses Total operating expenses 61,000 56,000 17,000 (134,000) 188,000 Operating income Print Done ck Check Answer. Clear All

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