Goldstein Corporation manufactures a drink bottle, model CL24 During 2020, Goldstein produced 180,000 bottles at a total cost of $765,000 Beecher Corporation has offered to supply as many bottles as Goldstein wants at a cost of $4 15 per bottle Goldstein anticipates needing 193,000 bottles each year for the next few years 1 a What is the average cost of manufacturing a drink bottle in 2020 How does it compare to Beecher's offer b Can Goldstein use the answer in requirement 1a to determine the cost of manufacturing 193,000 drink bottles Explain 2 Goldstein'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 y $437,000 $2 00X During the years used to estimate the regression equation, the production of drink bottles varied from 169,000 to 203,000 Using this equation, estimate how much it would cost Goldstein to manufacture 193,000 drink bottles How much more or less costly is it to manufacture the bottles rather than to acquire them from Beecher 3 What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing drink bottles

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Goldstein Corporation manufactures a drink bottle, model CL24. During 2020, Goldstein produced 180,000 bottles at a total cost of $765,000. Beecher Corporation has offered to

Goldstein Corporation manufactures a drink bottle, model CL24. During 2020, Goldstein produced 180,000 bottles at a total cost of $765,000.

Beecher Corporation has offered to supply as many bottles as Goldstein wants at a cost of $4.15 per bottle. Goldstein anticipates needing 193,000 bottles each year for the next few years.

1.	a.	What is the average cost of manufacturing a drink bottle in 2020? How does it compare to Beecher's offer?
	b.	Can Goldstein use the answer in requirement 1a to determine the cost of manufacturing 193,000 drink bottles? Explain.
2.	Goldstein'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:y = $437,000 + $2.00X During the years used to estimate the regression equation, the production of drink bottles varied from 169,000 to 203,000. Using this equation, estimate how much it would cost Goldstein to manufacture 193,000 drink bottles. How much more or less costly is it to manufacture the bottles rather than to acquire them from Beecher?
3.	What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing drink bottles?