Although overhead costs were related to revenues throughout the company, ence in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business the experi- Following instructions from the corporate offices, the controller's office in Brazil collect the following information for monthly operations from last year: Month Cases Price Index Operating Costs 1345,000 2362,000 3. 358,000 380,000 374,000 6 395,000 7 367,000 8 412,000 $5,699.139 5,806,638 5,849,905 5,927,617 5,939.135 6,043,364 5,918,495 6,133,868 6,126,130 6,186.625 6,208,799 6,362,255 115 118 122 124 125 128 398,000 133 133 132 10 .. 421,000 417000 12 432,000 136 139 These data are considered representative for both past and future operations in Brazil. Required Prepare an estimate of operating costs assuming that 450,000 cases will be shipped next month based on the controller's analysis of accounts. cases will be shipped next month. next month by using the results of a simple regression of operating costs on cases h Use the high-low method to prepare an estimate of operating costs assuming that 450,000 c Prepare an estimate of operating costs assuming that 450,000 cases will be shipped d Prepare an estimate of operating costs assuming that 450.000 cases will be shipped next e Make a recommendation to the managers about the most appropriate estimate given the shipped. month by using the results of a multiple regression of operating costs on cases shipped and the price level. Assume a price level of 145 for next month. circumstances. Although overhead costs were related to revenues throughout the company, ence in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business the experi- Following instructions from the corporate offices, the controller's office in Brazil collect the following information for monthly operations from last year: Month Cases Price Index Operating Costs 1345,000 2362,000 3. 358,000 380,000 374,000 6 395,000 7 367,000 8 412,000 $5,699.139 5,806,638 5,849,905 5,927,617 5,939.135 6,043,364 5,918,495 6,133,868 6,126,130 6,186.625 6,208,799 6,362,255 115 118 122 124 125 128 398,000 133 133 132 10 .. 421,000 417000 12 432,000 136 139 These data are considered representative for both past and future operations in Brazil. Required Prepare an estimate of operating costs assuming that 450,000 cases will be shipped next month based on the controller's analysis of accounts. cases will be shipped next month. next month by using the results of a simple regression of operating costs on cases h Use the high-low method to prepare an estimate of operating costs assuming that 450,000 c Prepare an estimate of operating costs assuming that 450,000 cases will be shipped d Prepare an estimate of operating costs assuming that 450.000 cases will be shipped next e Make a recommendation to the managers about the most appropriate estimate given the shipped. month by using the results of a multiple regression of operating costs on cases shipped and the price level. Assume a price level of 145 for next month. circumstances