Gamarro Corporation manufactures a drink bottle, model CL24. During 2017, Gamarro produced 180,000 bottles at a total cost of $558,000. Sealy Corporation has offered to supply as many bottles as Gamarro wants at a cost of $3.25 per bottle. Gamarro anticipates needing 196,000 bottles each year for the next few years. Read the requirements. Requirement 1a. What is the average cost of manufacturing a drink bottle in 2017? How does it compare to Sealy's offer? The average cost of per bottle is than Sealy's offer. 1. a. What is the average cost of manufacturing a drink bottle in 2017? How does it compare to Sealy's offer? b. Can Gamarro use the answer in requirement 1a to determine the cost of manufacturing 196,000 drink bottles? Explain. Gamarro's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the drink bottle as the dependent variable and drink bottles produced as the independent variable: 2. y = $439,000 + $1.00% During the years used to estimate the regression equation, the production of drink bottles varied from 169,000 to 206,000. Using this equation, estimate how much it would cost Gamarro to manufacture 196,000 drink bottles. How much more or less costly is it to manufacture the bottles rather than to acquire them from Sealy? What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing drink bottles? 3