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Your company leases a copier The contract states that you must pay the leasing company

Your company leases a copier. The contract states that you must pay the leasing company $3,000 per year and $.005 per copy.

Required:
 

A.

Write the equation to predict estimated total lease cost.

   

 

 

   

B.

Compute the estimated total costs if:

   

 

i.

10,000 copies are made.

 

 

ii.

50,000 copies are made.

 

 

 

 

 

C.

Compute the estimated cost per unit if:

   

 

i.

10,000 copies are made.

 

 

ii.

50,000 copies are made.

 

 

 

 

 

       

86. Sabina and Associates has the following current year costs:
 

Variable costs

$4 per unit

Fixed costs

$20,000

 

 


Next year, the company plans to enter into an arrangement with a supplier that will result in a 15% decrease in variable costs. They also plan on reducing their rental space, which will decrease fixed costs by 10%.

Required:
 

A.

What will be the new equation to predict total costs?

 

 

B.

If next year’s production is expected to be 10,000 units, what will be total estimated costs?

 

 

87. You run a regression analysis and receive the following results:
 

Multiple R

.39429

 

 

 

 

R Square

.15547

 

 

 

 

Adjusted R Square

.14964

 

 

 

 

Standard Error

.44416

 

 

 

 

 

 

 

 

 

 

Analysis of Variance

 

 

 

   

 

DF

Sum of Squares

Mean Square

 

 

Regression

1

5.26588

5.26588

 

 

Residual

145

28.60536

.19728

 

 

 

 

 

 

 

 

F = 26.69262

Signif F = .0000

 

 

 

 

 

 

 

 

 

 

Variables in the Equation

         

 

 

 

 

 

 

Variable

Coefficients

Standard error

t Stat

P-value

 

X Variable 1

11.0300

.021000

5.166

.0000

 

Intercept

8833.0700

.090000

9.751

.0000

 

 

 

 

 

 

 

           


Required:
 

A.

What is the fixed cost in this regression analysis?

 

 

B.

What is the variable cost per unit?

 

 

C.

Prepare the cost equation based upon these results.

 

 

D.

Does this regression equation "fit" the data well? What information did you examine to answer this question?

Jan 09 2020 Read more Less More

Answer (UnSolved)

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