Prest Metal Products manufactures and sells various products. The products are manufactured at one of a few plants (depending on the product) and then shipped to a distribution center for eventual delivery to customers. The Auburn Distribution Center (ADC) of Prest Metal Products handles a subset of Prest Products. The products handled by the ADC are fairly similar in size and weight and differ primarily in features that do not affect handling or packaging. When the sales staff at Prest receives an order, they send it to the appropriate distribution center to fill (collect units and package for shipping) and ship the units to the customer. A single order may consist of one (although unusual) or more units. Regardless of the number of units in the order, ADC has to follow certain steps to process the order, such as verifying the customer's address and credit information, review the order for errors, and so on. The ADC is also responsible for following up on any complaints from the customer about problems with the order. The ADC expects to distribute 250,000 units of products next month. As a part of the normal planning process at ADC, the center controller has classified next month's expected operating costs (excluding costs of the distributed product) as fixed or variable (with respect to units shipped) as follows. Administration Center labor Center lease Account Depreciation on equipment Miscellaneous Order processing Supervision Supplies (including packing materials) Utilites Total Operating Costs $ 37,400 297,400 127,800 125,000 127,400 178,800 76,300 201, 300 86,000 $ 1,257,400 Behavior $ 34,800 Fixed $144,300 Fixed $ 102,800 Fixed $ 114,800 Fixed $56,800 Fixed $ 40,800 Fixed $ 52,800 Fixed All Variable $ 62,800 Fixed The center manager has asked the financial staff for more information about center costs and whether there is a better way to estimate them rather than having the controller go through the monthly account analysis. The center manager assigned the controller's staff to recommend improvements to the current process. Historically, all the financial and operation performance measures at ADC have been based on the number of units shipped. However, in preparing the analysis, one of the analysts on the controller's staff collected information from the last twelve months on orders processed as well units shipped and ADC operating costs. These follow here: Month 1 2 3 4 5 6 7 8 9 10 11 12 Units 239,970 247,250 244,550 259,410 255,360 269,540 250,630 281,020 Orders Center Cost 10,390 $ 997,030 16,440 1,224,870 1,064,800 13,170 15,350 16,910 13,570 16,170 12,820 8,850 12, 230 1,205, 240 1, 222, 120 1,221,730 1,157,460 271,560 287,100 284,400 294,570 The controller and other managers at ADC agree that operations and costs last year were representative for the center. 13,240 11,430 1,216,590 1,136,790 1,164, 150 1,183,070 1,217,614 d-1. Using Excel, calculate a multiple regression of operating costs on units shipped and orders processed, and enter the regression coefficients. d-2. Compute an estimation of operating costs assuming that 275,000 units based on 13,000 orders will be shipped in a future month by using the results of a multiple regression of operating costs on units shipped and orders processed. Req D1 Req D2 Using Excel, calculate a multiple regression of operating costs on units shipped and orders processed, and enter the regression coefficients. Note: Round "Intercept" to the nearest whole dollar amount. Round "Units" and "Orders processed" to 2 decimal places. Intercept Units Orders processed Req D1 Req D2 Compute an estimation of operating costs assuming that 275,000 units based on 13,000 orders will be shipped in a future month by using the results of a multiple regression of operating costs on units shipped and orders processed. Note: Round "Units" and "Orders processed" to 2 decimal places. Round "Intercept" and final answer to the nearest whole dollar amount. Estimate of operating costs < Req D1 Req D2 > Show less