Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Garfield Company manufactures a popular brand of dog repellant known as Dog Gone It, which it sells in gallon-size bottles with a spray attachment. The

image text in transcribedimage text in transcribedimage text in transcribed

Garfield Company manufactures a popular brand of dog repellant known as Dog Gone 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: Month January February March April May June Number of Bottles Sold 1,09 1,460 1,780 2,390 3,540 3,630 Operating Cost $ 10,520 15,650 15,910 19,690 27,720 34,610 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 entirely correct. Variable Cost per $ 9.48 Unit Fixed Cost $ 198 X 4. Perform a least-squares regression analysis on Garfield's data. (Use Microsoft Excel or a statistical package to find the coefficients 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.) Coefficients Intercept X Variable 1 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.) Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations From the regression output, % number of bottles explains about of the variability in Garfield's total cost. percentage answer to the nearest whole number.) Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations From the regression output, number of bottles explains about % of the variability in Garfield's total cost. 6. Using the regression output, create a linear cost equation (y= a + bx) for estimating Garfield's operating costs. (Round your answers to 3 decimal places.) Total Cost = (Number of Bottles)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions