In 1997 Fuller and coworkers at Texas A&M University estimated the operating costs of cotton gin plants of various sizes. The operating costs of the next to the smallest plant is shown in the following tall 2000 4000 6000 8000 10000 12000 163,200 230,480 301,500 376,160 454,400 536,400 Here x is the annual number of bales produced, and y is the dollar total cost. (Use 4 decimal places in your answer) A Determine the best fitting line using least squares. Also determine the square of the correlation coefficient. The best fitting line is C(x)- 37.3203x+82448.0000 The square of the correlation coefficient is ²0.998719249 B. The study noted that revenue was $63.25 per bale. At what level of production will this plant break even? The revenue equation is R(x)- 63.25x The profit equation is Px)- 25.9297x-82448 The production will break even when 3179.6725 bales are produced. C. What are the profts or losses when production is 3000 bales? 4000 bales? (Round to the nearest cent.) When 3000 bales are produced, the gin experiences a 4000 9000 x (loss, profit) of $ 5408 87000 21270 000 When 4000 beles are produced, the gin experiences a (loss, profit) if s

In 1997 Fuller and coworkers at Texas A&M University estimated the operating costs of cotton gin plants of various sizes. The operating costs of the next to the smallest plant is shown in the following tall 2000 4000 6000 8000 10000 12000 163,200 230,480 301,500 376,160 454,400 536,400 Here x is the annual number of bales produced, and y is the dollar total cost. (Use 4 decimal places in your answer) A Determine the best fitting line using least squares. Also determine the square of the correlation coefficient. The best fitting line is C(x)- 37.3203x+82448.0000 The square of the correlation coefficient is ²0.998719249 B. The study noted that revenue was $63.25 per bale. At what level of production will this plant break even? The revenue equation is R(x)- 63.25x The profit equation is Px)- 25.9297x-82448 The production will break even when 3179.6725 bales are produced. C. What are the profts or losses when production is 3000 bales? 4000 bales? (Round to the nearest cent.) When 3000 bales are produced, the gin experiences a 4000 9000 x (loss, profit) of $ 5408 87000 21270 000 When 4000 beles are produced, the gin experiences a (loss, profit) if s

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 3MC

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In 1997 Fuller and coworkers at Texas A&M University estimated the operating costs of cotton gin plants of various sizes. The operating costs of the next to the smallest plant is shown in the following table. x 2000 4000 6000 8000 10000 12000 y 163,200 230,480 301,500 376,160 454,400 536,400 Here x is the annual number of bales produced, and y is the dollar total cost. (Use 4 decimal places in your answer.)A. Determine the best fitting line using least squares. Also determine the square of the correlation coefficient.The best fitting line is C(x) = .The square of the correlation coefficient is r2 = .B. The study noted that revenue was $63.25 per bale. At what level of production will this plant break even?The revenue equation is R(x) = The profit equation is P(x) = The production will break even when bales are produced.C. What are the profits or losses when production is 3000 bales? 4000 bales? (Round to the nearest cent.)When…
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