Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Managers at Go Pirates Corp. are concerned that the company's costs of production have gone wild. The chief fiancnial officer brings you the following historical

Managers at Go Pirates Corp. are concerned that the company's costs of production have gone wild. The chief fiancnial officer brings you the following historical data:
image text in transcribed
Regression Analysis Assignment Due Managers at Go Pirates Corp. are concerned that the company's costs of production have gone wild. The Chief Financial Officer brings you the following historic data: Period Quarter 1, 2018 Quarter 2, 2018 Quarter 3, 2018 Quarter 4, 2018 Quarter 1, 2019 Quarter 2, 2019 Quarter 3, 2019 Quarter 4, 2019 Units 1,120 980 1,260 1,340 1,280 1,300 1,420 1,500 Costs $99,598.60 $97,880.40 $103,068.80 $105,235.20 $103,776.40 $104,202.00 $107,411.60 $109,333.00 Go Pirates' selling price is $60 per unit. Required: Part 1 (Excel): Using the High-Low method: a. Estimate the company's cost formula. b. Estimate the total cost of producing 1,200 units. C. Calculate the breakeven point in dollar sales. d. Prepare the Contribution Format Income Statement when 1,200 units are sold. e. Compute the Degree of Operating Leverage when 1,200 units are sold. Compute Net Operating Income if sales increased 120 units above this level

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions