An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total com data for a manufacturing operao'on. mil-tinnidum Twas} (units) 30 400 4,100 450 5,000 550 5,300 5130 5,900 700 5,300 750 5,900 (3) Use these data to develop an estimated regression equation that could be used to predict the total cost fur a given production volume. (Ruund your numerical values to two decimal places) 9 2076 X (b) what is the variable cost (in dollars) per unit pruduced? $x (c) Compute the coemcient of determination. (Raund your answerto three decimal places.) |:l what percentage of the vanatinn in total cost can he explained by production vulume? (Round your answer to one decimal place.) |:l v. (d) The company's production schedule shows son units must be produced next month. Predict the total cost (m dollars) for this nperatlon. (RDurld your answer to the nearest cent.) as