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The following information is available regarding the total repair costs of Alexander Design Company for six months of 2020: Units Repair Produced Cost January 1,500
The following information is available regarding the total repair costs of Alexander Design Company for six months of 2020: Units Repair Produced Cost January 1,500 $15.875 February 1.750 $16,500 March 1.000 $11,250 April 1.250 $15,250 May 1.875 $17.750 June 2.250 $20.250 Perform a least-square regression analysis using Excel to estimate the variable and fixed components in the repair costs. 1. Copy and past the summary output below. (2pts) 2. Construct the cost formula based on the estimated variable and fixed cost components obtained from your regression analysis. NOTE: round values in intermediate calculations to two decimal points. (3pts) 3. Assume that the unit price is $3,000. Using the estimated variable and fixed costs obtained from your regression analysis, how many units must the company produce to break even with respect to the repair costs? NOTE: round values in intermediate calculations to two decimal points. (5pts)
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