Graham Corporation manufactures a children's bicycle, model CT8. Graham currently manufactures the bicycle frame. During 2023, Graham made 39,000 frames at a total cost of $1,326,000. Ryan Corporation has offered to supply as many frames as Graham wants at a cost of $32.50 per frame. Graham anticipates needing 43,000 frames each year for the next few years. Required Required 1. a. What is the average cost of manufacturing a bicycle frame in 2023? How does it compare to Ryan's offer? b. Can Graham use the answer in requirement 1a to determine the cost of manufacturing 43,000 bicycle frames? Explain. 2. Graham's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the bicycle frame as the dependent variable and bicycle frames produced as the independent variable: Jeason is that y = $432,000+ $22X cturing costs of the bicycle frame as the dependent variable During the years used to estimate the regression equation, the production of bicycle frames varied from 36,000 to 43,000. Using this equation, estimate how much it would cost Graham to manufacture 43,000 bicycle frames. How much more or less costly is it to manufacture the frames rather than to acquire them from Ryan? 3. What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing bicycle frames? Jation, estimate how much it would cost Graham to |? Print Done Requirement 1. (a) What is the average cost of manufacturing a bicycle frame in 2023? How does it compare to Ryan's offer? The average cost of $per frame is than Ryan's offer. (b) Can Graham use the answer in requirement 1a to determine the cost of manufacturing 43,000 bicycle frames? Explain. Graham take the average manufacturing cost in 2023 to determine the total cost of manufacturing 43,000 bicycle frames. The reason is that Requirement 2. Graham's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the bicycle frame as the dependent variable and bicycle frames produced as the independent variable: y = $432,000 + $22X During the years used to estimate the regression equation, the production of bicycle frames varied from 36,000 to 43,000. Using this equation, estimate how much it would cost Graham to manufacture 43,000 bicycle frames. How much more or less costly is it to manufacture the frames rather than to acquire them from Ryan? Estimated cost to make the frames $ Cost to purchase the frames $ It will cost $ V to purchase the frames rather than manufacture them in-house. Requirement 3. What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing bicycle frames? Requirement 3. What other information would you need to be confident that the equation in requirement 2 accurately predicts the cost of manufacturing bicycle frames? Graham would need to consider several factors before being confident that the equation in requirement 2 accurately predicts the cost of manufacturing bicycle frames. (Leave any unused cells blank.)