Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Simba Market, a chain of convenience grocery stores in the the western province, has store hours that fluctuate from month to month as the tourist

Simba Market, a chain of convenience grocery stores in the the western province, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the companys stores are listed below for the past six months. Month Total Hours of Operation Total Utility Cost January 500 $ 3,120 February 6003,600 March 7504,350 April 4502,950 May 4002,550 June 3502,350 Required 1-a Use the high Low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y =a + b X)1-b. What is the variable cost per hour of operation?. 3-a. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. 3-b. What is the variable utility cost per hour of operation? 4. During July, the store will be open 300 hours. Predict the stores total utility cost for July using each of the cost-estimation methods employed in requirements (1) and (3).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Progressive Audit A Toolkit For Improving Your Organizational Quality Culture

Authors: Robert Pfannerstill

1st Edition

0873896629, 978-0873896627

More Books

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago

Question

2. Outline the functions of nonverbal communication

Answered: 1 week ago