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Please solve the question Mac Renovations has been using the home's interior square feet as his cost driver in estimating costs. It was brought to
Please solve the question
Mac Renovations has been using the home's interior square feet as his cost driver in estimating costs. It was brought to his attention that a home's external openings might be a better cost driver in estimating costs. The following data was gathered from the last 12 houses he had painted. House Square Feet Openings Costs 12,500 7 $ 2,810 23,150 12 $ 3,742 3 2,800 8 $ 3,100 4 2,850 8 $ 3,150 5 4,750 16 $ 4,700 6 2,950 8 $ 3,225 72,700 7 $ 2,920 8 2,550 6 $ 2,836 92,600 7 $ 3,242 10 3,700 13 $ 4,112 11 2,650 7 $ 3,210 12 3,550 12 $ 3,965 Compute the scattergraph, the total cost equation, and the r-squared for each cost driver in estimating costs. Which cost driver is better and why? (check figure: square feet variable costs = .86 and openings fixed costs = 1,750.76) =Step by Step Solution
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