Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped...

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Accounting

Odessa, Inc., manufactures one model of computer desk. Thefollowing data are available regarding units shipped and totalshipping costs:
Month Number of Units Shipped Total Shipping Cost
January 40 $2,950
February 75 3,650
March 25 2,250
April 35 1,850
May 30 2,300
June 55 3,250
July 50 3,000

Required:
1. Prepare a scattergraph of Odessa’s shipping cost anddraw the line you believe best fits the data.

3. Using the high-low method, calculate Odessa’stotal fixed shipping costs and variable shipping cost perunit.

4. Perform a least-squares regression analysis onOdessa’s data. (Use Microsoft Excel or a statisticalpackage to find the coefficients using least-squares regression.Round your answers to 2 decimalplaces.)

5. Using the regression output, create a linearequation (y = a + bx ) for estimating Odessa’sshipping costs.

Answer & Explanation Solved by verified expert

3.7 Ratings (686 Votes)

ANSWER 3 High low method Variable cost per unit y2y1x2x1 y2 3650 y1 2250 x2 75 and x1 25 Thus variable cost per unit 365022507525 140050 28 Fixed cost y2 See Answer

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Month	Number of Units Shipped	Total Shipping Cost
January	40	$2,950
February	75	3,650
March	25	2,250
April	35	1,850
May	30	2,300
June	55	3,250
July	50	3,000