Question
Tidal Co. produces surfboards and paddleboards. Presented is the monthly information on the production volume and manufacturing costs: Total Manufacturing Costs Total Boards produced Surfboards
Tidal Co. produces surfboards and paddleboards. Presented is the monthly information on the production volume and manufacturing costs: | |||||
Total Manufacturing Costs | Total Boards produced | Surfboards Produced | Paddleboards Produced | ||
January-17 | 37,908 | 158 | 68 | 90 | |
February-17 | 88,020 | 284 | 162 | 122 | |
March-17 | 47,318 | 189 | 99 | 90 | |
April-17 | 47,716 | 221 | 81 | 140 | |
May-17 | 42,593 | 225 | 45 | 180 | |
June-17 | 42,512 | 198 | 63 | 135 | |
July-17 | 40,028 | 162 | 72 | 90 | |
August-17 | 53,940 | 253 | 95 | 158 | |
September-17 | 46,839 | 230 | 68 | 162 | |
October-17 | 49,842 | 212 | 99 | 113 | |
November-17 | 41,601 | 176 | 77 | 99 | |
December-17 | 54,392 | 234 | 108 | 126 | |
January-18 | 48,337 | 225 | 81 | 144 | |
February-18 | 51,840 | 243 | 90 | 153 | |
March-18 | 33,885 | 140 | 54 | 95 | |
1. Use the high-low method to develop a cost-estimating equation for total manufacturing costs.
2. 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.
3. 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 from Question 1.
Harborside Corp. produces swimsuits. Presented is the monthly information for the last 15 months: | ||||
Total Manufacturing Costs | Total Swimsuits produced | Boardshorts Produced | Bikinis Produced | |
January-16 | 28,431 | 118 | 51 | 68 |
February-16 | 31,945 | 169 | 34 | 135 |
March-16 | 35,488 | 142 | 74 | 68 |
April-16 | 35,787 | 166 | 61 | 105 |
May-16 | 42,175 | 196 | 122 | 75 |
June-16 | 31,884 | 149 | 47 | 101 |
July-16 | 30,021 | 122 | 54 | 68 |
August-16 | 40,455 | 189 | 71 | 118 |
September-16 | 35,129 | 172 | 51 | 122 |
October-16 | 37,382 | 159 | 74 | 85 |
November-16 | 31,201 | 132 | 58 | 74 |
December-16 | 40,794 | 176 | 81 | 95 |
January-17 | 36,253 | 169 | 61 | 108 |
February-17 | 38,880 | 182 | 68 | 115 |
March-17 | 25,414 | 105 | 41 | 71 |
1. Use the high-low method to develop a cost-estimating equation for total manufacturing costs. |
2. Use simple regression analysis to develop a cost-estimating equation for total manufacturing costs. A customer has offered to purchase 75 boardshorts for $195 per item. Management has asked your advice regarding whether or not to accept the offer. What advice do you have for management? | |
3. Use multiple regression analysis to develop a cost-estimating equation for total manufacturing costs. A customer has offered to purchase 75 boardshorts for $195 per item. Management has asked your advice regarding whether or not to accept the offer. What advice do you have for management? | |
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