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Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Number of Operating Bottles Cost Month Sold January 1,010 $10,460 February1,420 15,750 March 1,850 15,970 April 2,360 19,820 May 3,490 27,660 June 3,600 34,700 Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. (Do not round your intermediate calculations. Round your variable cost per unit answer to 2 decimal places and fixed cost answer to the nearest whole number.) Answer is complete but not Variable Cost per Unit Fixed Cost $ 8.85X $ 2,124X 4. Perform a least-squares regression analysis on Garfield's data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.) Answer is complete but not Intercept Coefficients 3,284.942X ct. X Variable 1 7.766X 5. Determine how well this regression analysis explains the data. (Round you regression statistics to three decimal places and your percentage answer to the nearest whole number) Multiple R R Square Answer is complete but not entirely correct. Regression Statistics 0.975X 0.950X Adjusted R Square 0.938X Standard Error 2.218.858> Observations 6.000 From the regression of the Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. (Do not round your intermediate calculations. Round your variable cost per unit answer to 2 decimal places and fixed cost answer to the nearest whole number.) Answer is complete but not Variable Cost per Unit Fixed Cost $ 8.85 $ 2,124X 4. Perform a least-squares regression analysis on Garfield's data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.) Answer is complete but not Intercept Variable 1 Coefficients 3,284.942 ct. 7.766X 5. Determine how well this regression analysis explains the data. (Round you regression statistics to three decimal places and your percentage answer to the nearest whole number.) Answer is complete but not entirely correct. Regression Statistics: Multiple R 0.975X R Square 0.950X Adjusted R Square 0.938X Standard Error 2,218.888x Observations 6.000 From the regression output, number of bottles explains about 95% of the variability in Garfield's total cost. 6. Using the regression output, create a linear cost equation (ya + bx) for estimating Garfield's operating costs. (Round your answers to 3 decimal places.) Answer is complete but not entirely correct.. Total Cost $7.768X S 3,284.942 (Number of Bottles)
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