Kendrick Anderson Furniture Maker, LLC creates custom tables in Atlanta. Assume that the data to the right

represents monthly information on production volume and manufacturing costs since the company started

operations.

Required

a$.$ Use the high$-$low method to develop a cost$-$estimating equation for total manufacturing costs driven by total

tables produced.

b$.$ In Excel, create a scatter graph of total manufacturing costs and total units produced. Use the graph to identify

any unusual observations. Hint: Highlight the data to be included in the chart. Open the insert tab and select the

Scatter chart in the Charts group.

c$.$ Excluding any unusual observations, use the high$-$low method to develop a cost$-$estimating equation for total

manufacturing costs. Comment on the results, comparing them with the results from requirement $($a$).$

a$.,$ b$.$

d$.$ Use simple regression analysis in Excel to develop a cost$-$estimating equation for total manufacturing costs. How

much variation in manufacturing costs is explained by your cost$-$estimating equation? What advantages does simple

regression analysis have in comparison with the high$-$low method of cost estimation? Why must analysts carefully

evaluate the data used in simple regression analysis? Hint: Exclude any outlier point$($s$).$ Hint: Under the Data tab,

click on Data analysis, Regression, and select the cells for the $Y$ Range and $x$ Range.

e$.$ A customer has offered to purchase $50$ dining room tables for $$452$ per table. Management has asked your advice

regarding the desirability of accepting the offer. What advice do you have for management? Complete a multiple

a$.$