Question 5 (15 marks)

A production plant in Bromptom Ltd ("Bromptom") manufactures a particular component part for bicycles.

The company's intern managed to come up following data for the past six months shown below.

Month	No. of Units Manufactured	Total Manufacturing Cost
Jan 2022	343	$6,580
Feb 2022	430	$6,864
Mar 2022	423	$7,043
Apr 2022	482	$7,335
May 2022	494	$7,171
Jun 2022	424	$5,055

1. Use Microsoft Excel to prepare a regression analysis and answer the following questions:
2. State the regression equation in the form of y=mx+c.
3. State clearly what "y" and "x" in the equation represents
4. State clearly the value of R²

Show your workings clearly and provide the Regression Analysis Summary Output Table together with your answers.

[4 marks]

1. Using the answers in part (a), determine the value of the (rounded to 3 significant figures):
2. Total Fixed Cost
3. Unit Variable Cost
4. predicted Total Manufacturing Cost if the production capacity is 500 units for July 2022.

Show your workings clearly

[4 marks]

1. The Production Manager of Bromptom said "I think the predicted Total Manufacturing Cost you have calculated is not valid. This is because ..."

Suggestthree (3) possible reasons the management accountant may have in commenting that the predicted Total Manufacturing Cost is not valid.

[3 marks]

1. Based on the information provided and your understanding on Pricing Methods. Suggest 2 ways which Brompton can determine the selling price of their bicycles. Provide examples for each pricing method.

[4 marks]

The marking criteria for this section are shown below.

Criteria	Marks Allocated	Description
Data and Calculations	8 marks	Detailed working steps, correct and clearly shown
Analysis	7 marks	Appropriate reasons given on why the regression results could be invalid. Correct pricing methods and examples given for each pricing method given in context to the question.