Question
Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the
Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the companys stores are listed below for the past six months.
Month | Total Hours of Operation | Total Utility Cost | |||||
January | 550 | $ | 2,370 | ||||
February | 600 | 2,500 | |||||
March | 800 | 3,100 | |||||
April | 500 | 2,300 | |||||
May | 450 | 2,000 | |||||
June | 400 | 1,900 | |||||
Required: 1-a. Use the high-low method to estimate the cost behavior for the stores utility costs. Express the cost behavior in formula form (Y = a + bX). 1-b. What is the variable utility cost per hour of operation? 3-a. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. 3-b. What is the variable utility cost per hour of operation? 4. During July, the store will be open 300 hours. Predict the stores total utility cost for July using each of the cost-estimation methods employed in requirements (1) and (3).
Use the high-low method to estimate the cost behavior for the stores utility costs. Express the cost behavior in formula form (Y = a + bX).
|
What is the variable utility cost per hour of operation?
|
Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. (Do not round intermediate calculations. Round the intercept to the nearest whole number and the slope to two decimal places.)
|
What is the variable utility cost per hour of operation? (Do not round intermediate calculations. Round the intercept to the nearest whole number and the slope to two decimal places.)
|
During July, the store will be open 300 hours. Predict the stores total utility cost for July using each of the cost-estimation methods employed in requirements (1) and (3). (Do not round intermediate calculations. Round the intercept to the nearest whole number and the slope to two decimal places.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started