Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

George Caloz & Frres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the companys products, a platinum diving watch, goes

George Caloz & Frres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the companys products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks:

Week Units Total Etching Cost
1 4 $ 18
2 3 17
3 8 25
4 6 20
5 7 24
6 2 16
30 $ 120

For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.

Required:

1. Prepare a scattergraph plot. (Plot etching costs on the vertical axis and units on the horizontal axis.)

Instructions:

1. On the graph below, use the point tool (Week 1) to plot units on the horizontal axis and total etching cost on the vertical axis.

2. Repeat the same process for the plotter tools (Week 2 to Week 6).

3. To enter exact coordinates, click on the point and enter the values of x and y.

4. To remove a point from the graph, click on the point and select delete option.

2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.

2-b. Express these estimates in the form Y = a + bX.

3. If the company processes five units next week, what would be the expected total etching cost? (Round your intermediate calculations and final answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Culture Audits Supporting Organizational Success Information Line

Authors: Cynthia Solomon

1st Edition

156286386X, 978-1562863869

More Books

Students also viewed these Accounting questions

Question

The Nature of Nonverbal Communication

Answered: 1 week ago

Question

Functions of Nonverbal Communication

Answered: 1 week ago

Question

Nonverbal Communication Codes

Answered: 1 week ago