the proposal MAIS34 Cost Estimation, Interpretation, and Analysis (Requires Computer Spreadsheet) Brady Table Company produces two styles of modem dining room and kitchen tables. Presented is LO3 monthly information on production volume and manufacturing costs: Total Manufacturing Costs Dining Room Tables Produced Kitchen Total Tables Tables Produced Produced June 2017.. July. August September October November.. December. January 2018 February March. $69,975 375 75 158 300 150 270 255 150 150 233 76,332 90.945 308 428 315 158 59,615 63,180 78,863 79,527 70,988 70,853 66,713 60 263 315 113 165 135 75 368 375 300 330 105 225 270 120 150 April May. 146,700 473 270 203 263 89.900 420 383 158 June July August September 78,065 83,070 69.335 90,653 113 165 270 353 293 188 128 165 390 180 210 October November. December. 80,562 86,400 56,475 375 135 240 405 150 255 248 90 158 Required a. Use the high-low method to develop a cost-estimating equation for total manufacturing costs. Interpret the meaning of the "fixed" costs and comment on the results. b. Use the chart feature of a spreadsheet to develop a scatter graph of total manufacturing costs and total units produced. Use the graph to identify any unusual observations c. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs. Comment on the results, comparing them with the results in requirement (a). d. Use simple regression analysis to develop a cost-estimating equation for total manufacturing costs. What advantages does simple regression analysis have in comparison with the high- low method of cost estimation? Why must analysts carefully evaluate the data used in simple regression analysis? e A customer has offered to purchase 50 dining room tables for $220 per table. Management has asked your advice regarding the desirability of accepting the offer. What advice do you have for management? Additional analysis is required. MA15-35. Simple and Multiple Regression (Requires Computer Spreadsheet) Dan Mullen is emploved by a mail-order distributor and reconditions used desktop computers, broad- band routers, and laser printers. Dan is paid S12 per hour, plus an extra S6 per hour for work in excess of 40 hours per week. The distributor just announced plans to outsource all reconditioning work Because the distributor is pleased with the quality of Dan's work, he has been asked to enter into a long-term contract to recondition used desktop computers at a rate of S40 per computer, plus all parts The distributor also offered to provide all necessary equipment at a rate of $200 per month. Dan has LO3 e wigme roquires the ase of a computer spreadsheet sach as Excel" so sobve The igm a es prvaos knowledgr of compur Required d. Use the high-low method to develop a cost-estimating equation for total manufacturing costs. Interpret the meaning of the "fixed" costs and comment on the results. b. Use the chart feature of a spreadsheet to develop a scatter graph of total manufacturing costs and total units produced. Use the graph to identify any unusual observations. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs. Comment on the results, comparing them with the results in requirement (a) d. Use simple regression analysis to develop a cost-estimating equation for total manufacturing costs. What advantages does simple regression analysis have in comparison with the high- low method of cost estimation? Why must analysts carefully evaluate the data used in simple regression analysis? e. A customer has offered to purchase 50 dining room tables for $220 per table. Management has asked your advice regarding the desirability of accepting the offer. What advice do you have for management? Additional analysis is required. C. the proposal MAIS34 Cost Estimation, Interpretation, and Analysis (Requires Computer Spreadsheet) Brady Table Company produces two styles of modem dining room and kitchen tables. Presented is LO3 monthly information on production volume and manufacturing costs: Total Manufacturing Costs Dining Room Tables Produced Kitchen Total Tables Tables Produced Produced June 2017.. July. August September October November.. December. January 2018 February March. $69,975 375 75 158 300 150 270 255 150 150 233 76,332 90.945 308 428 315 158 59,615 63,180 78,863 79,527 70,988 70,853 66,713 60 263 315 113 165 135 75 368 375 300 330 105 225 270 120 150 April May. 146,700 473 270 203 263 89.900 420 383 158 June July August September 78,065 83,070 69.335 90,653 113 165 270 353 293 188 128 165 390 180 210 October November. December. 80,562 86,400 56,475 375 135 240 405 150 255 248 90 158 Required a. Use the high-low method to develop a cost-estimating equation for total manufacturing costs. Interpret the meaning of the "fixed" costs and comment on the results. b. Use the chart feature of a spreadsheet to develop a scatter graph of total manufacturing costs and total units produced. Use the graph to identify any unusual observations c. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs. Comment on the results, comparing them with the results in requirement (a). d. Use simple regression analysis to develop a cost-estimating equation for total manufacturing costs. What advantages does simple regression analysis have in comparison with the high- low method of cost estimation? Why must analysts carefully evaluate the data used in simple regression analysis? e A customer has offered to purchase 50 dining room tables for $220 per table. Management has asked your advice regarding the desirability of accepting the offer. What advice do you have for management? Additional analysis is required. MA15-35. Simple and Multiple Regression (Requires Computer Spreadsheet) Dan Mullen is emploved by a mail-order distributor and reconditions used desktop computers, broad- band routers, and laser printers. Dan is paid S12 per hour, plus an extra S6 per hour for work in excess of 40 hours per week. The distributor just announced plans to outsource all reconditioning work Because the distributor is pleased with the quality of Dan's work, he has been asked to enter into a long-term contract to recondition used desktop computers at a rate of S40 per computer, plus all parts The distributor also offered to provide all necessary equipment at a rate of $200 per month. Dan has LO3 e wigme roquires the ase of a computer spreadsheet sach as Excel" so sobve The igm a es prvaos knowledgr of compur Required d. Use the high-low method to develop a cost-estimating equation for total manufacturing costs. Interpret the meaning of the "fixed" costs and comment on the results. b. Use the chart feature of a spreadsheet to develop a scatter graph of total manufacturing costs and total units produced. Use the graph to identify any unusual observations. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs. Comment on the results, comparing them with the results in requirement (a) d. Use simple regression analysis to develop a cost-estimating equation for total manufacturing costs. What advantages does simple regression analysis have in comparison with the high- low method of cost estimation? Why must analysts carefully evaluate the data used in simple regression analysis? e. A customer has offered to purchase 50 dining room tables for $220 per table. Management has asked your advice regarding the desirability of accepting the offer. What advice do you have for management? Additional analysis is required. C