Required information [The following information applies to the questions displayed below.) Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Account Supplies Supervision Truck expense Building leases Utilities Warehouse labor Equipment leases Data processing equipment Other Total Operating Cost $ 350,000 215,000 1,200,000 855,000 215,000 860,000 760,000 945,000 850,000 $6,250,000 Behavior All variable $ 150,000 Fixed $ 190,000 Fixed $ 550,000 Fixed $ 125,000 Fixed $ 140,000 Fixed $ 600,000 Fixed All fixed $ 400,000 Fixed Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. $ Month 1 2 3 4 5 6 7 8 9 NM + 0 0 Cases 345,000 362,000 358,000 380,000 374,000 395,000 367,000 412,000 398,000 421,000 417,000 432,000 Price Index 115 117 118 122 124 125 128 133 133 132 136 139 Operating costs 5,699,139 5,806,638 5,849,905 5,927,617 5,939,135 6,043,364 5,918,495 6,133,868 6,126,130 6,186,625 6,208,799 6,362,255 10 11 12 These data are considered representative for both past and future operations in Brazil. d-1. Enter the regression coefficients. d-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a multiple regression of operating costs on cases shipped and the price level. Assume a price level of 145 for next month. Complete this question by entering your answers in the tabs below. Req D1 Req D2 Enter the regression coefficients. Run a multiple regression analysis based on operating costs on cases shipped and the price level. (Round "Intercept" to the nearest whole dollar amount. Round "Cases" and "Price Index" to 2 decimal places.) Intercept Cases Price Index Req D1 Reg D2 Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a multiple regression of operating costs on cases shipped and the price level. Assume a price level of 145 for next month. (Round the case coefficient to 5 decimal places and the price index coefficient to 2 decimal places. Round other intermediate calculations and final answer to the nearest whole dollar amount.) Show less Estimate of operating cost
