Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Account Supplies Supervision Truck expense Building leases Utilities Warehouse labor Equipment leases Data processing equipment Other Total Operating cost $1,784,000 221,000 1,110,000 861,000 230,000 850,000 757,000 928,000 831,000 $7,572,000 Behavior All variable $157,000 Fixed $171,000 Fixed $557,000 Fixed $140,000 Fixed $143,000 Fixed $617,000 Fixed All fixed $ 359,000 Fixed Althougn overnead costs were related to revenues throughout the company, the experience 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. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. Month Price Index 105 124 113 Cases 241,000 339,000 242,000 428,000 344,000 366,000 421.000 449,000 349,000 423,000 414,000 435.000 Operating costs $5,699, 169 5, 806,668 5, 849,935 5,927,647 5,939,165 6,043, 394 5,918,525 6,133,893 6, 126,160 6,186, 655 6,208,329 6,362,285 120 140 124 14 139 These data are considered representative for both past and future operations in Brazil. Problem 5-69 (Algo) Part b b. Use the high-low method to compute an estimate of operating costs assuming that 450,000 cases will be shipped next month. (Round variable cost to 5 decimal places. Round intermediate calculations and final answer to nearest whole dollar amount.) Estimate of operating cost c-1. Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. c-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients "Intercept" to nearest whole dollar amount. Round the case coefficient to 5 decimal places.) Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients "Intercept" to nearest whole dollar amount. Round the case coefficient to 5 decimal places.) Intercept Cases PACI Reg C2 > Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the rest simple regression of operating costs on cases shipped. (Round variable costs per unit to 5 decimal places. Round the and final answer to the nearest whole dollar amount.) Estimate of operating cost
