Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped and total shipping costs:

Month	Number of Units Shipped	Total Shipping Cost
January	30	$1,900
February	35	2,100
March	65	3,700
April	40	2,500
May	70	4,000
June	45	3,000
July	60	4,000

Part 1

Required:

1. Prepare a scattergraph of Odessas shipping cost and draw the line you believe best fits the data.

Part 2

Required:

3. Using the high-low method, calculate Odessas total fixed shipping costs and variable shipping cost per unit.

Using the high-low method, calculate Odessas total fixed shipping costs and variable shipping cost per unit. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar)

Fixed Cost
Variable Cost per Unit

4. Perform a least-squares regression analysis on Odessas data.

Perform a least-squares regression analysis on Odessas data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.)

	Coefficients
Intercept
X Variable

5. Using the regression output, create a linear equation (y = a + bx ) for estimating Odessas shipping costs.

Using the regression output, create a linear equation (y = a + bx ) for estimating Odessas shipping costs.

Total Shipping Cost =

+

Number of Units Shipped