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Please help with this question and answer all parts of it please.. ThanksUnited States Motors Incorporated ( USMI ) manufactures automobiles and light trucks and
Please help with this question and answer all parts of it please.. ThanksUnited States Motors Incorporated USMI manufactures automobiles and light trucks and distributes them for sale to consumers
through franchised retail outlets. As part of the franchise agreement, dealerships must provide monthly financial statements following
the USMI accounting procedures manual. USMI has developed the following financial profile of an average dealership that sells
new vehicles annually:
USMI is considering a major expansion of its dealership network. The vice president of marketing has asked Jack Snyder, corporate
controller, to develop some measure of the risk associated with the addition of these franchises. Jack estimates that of the mixed
costs shown are variable for purposes of this analysis. He also suggests performing regression analyses on the various components of
the mixed costs to more definitively determine their variability.
Required:
Calculate the composite dealership profit if units are sold.
The regression equation that Jack Snyder developed to project annual sales of a dealership has an squared of and a
standard error of the estimate of $ If the projected annual sales for a dealership total $ determine the
approximate confidence interval for Jack's prediction of sales. Hint: The confidence interval uses standard errors in
determining the interval.
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