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Please Include formulas (excel) Serenity Living manufactures gas fireplaces for home use. Each unit produced goes through a complex quality control process. The company has
Please Include formulas (excel)
Serenity Living manufactures gas fireplaces for home use. Each unit produced goes through a complex quality control process. The company has observed quality control costs as follows over the past 16 weeks: Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Units Produced 32 23 38 20 26 35 28 29 25 27 30 37 34 22 24 44 Total Quality Control Costs $ 670 $ 500 $ 750 $ 430 $ 630 $ 700 $ 603 $ 615 $ 533 $ 566 $ 629 $ 743 $ 685 $ 471 $ 518 $ 727 For planning purposes, the company's management wants to know the amount of variable quality control costs per unit and the total fixed quality control costs per week. Required: 1. Using the least-squares regression method, estimate the variable and fixed elements of the quality control cost. (Round variable cost to 2 decimal places.) Fixed cost Variable cost per unit 2. If the company produces 28 gas fireplaces next week, what are the expected total quality control costs? (Round intermediate and final value to 2 decimal places.) Total expected costStep by Step Solution
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