Break-Even AnalysisThe table below contains price-demand and total cost data for the production of treadmills, wherep is the wholesale price (in dollars) of a treadmill for an annual demand of a treadmills, and C is thetotal cost (in dollars) of producing a treadmills.X2,9103,4154,6455,330P ($)1,4501,2751,123918C ($)3,634,0003,782,0004,185,0004,290,000Use this data to find a linear regression equation for price-demand data, using as theindependent variable:P = ax + b,where a is rounded to 1 decimal place and b is rounded to the nearest integer.Use this data to find a linear regression model for the cost data, using a as the independentvariable:C(x) = cx + d,where c is rounded to the nearest integer and d is rounded to the nearest 10,000.Use these linear regression models to answer questions 11-14 below. Question 11Use the linear regression models above to answer this question.Estimate the fixed costs. Round to the nearest $10,000.$Question 12Use the linear regression models above to answer this question.Estimate the variable cost per treadmill. Round to the nearest dollar.per treadmill producedLA$

Using the given data, we ran a regression in excel with: Dependent Variable: Price Independent…

Question 11 Use the linear regression models above to answer this question. Estimate the fixed costs. Round to the nearest $10,000. $ Question 12 Use the linear regression models above to answer this question. Estimate the variable cost per treadmill. Round to the nearest dollar. per treadmill produced

Question 11 Use the linear regression models above to answer this question. Estimate the fixed costs. Round to the nearest $10,000. $ Question 12 Use the linear regression models above to answer this question. Estimate the variable cost per treadmill. Round to the nearest dollar. per treadmill produced

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxistand. To help accomplish this, the firm has gathered the following production cost data: Variable costs (per unit) ($) Process type Annualized fixed cost labor material energy Of plant & equip. Intermittent $1,000,000 24 26 20 Mass customization $1,190,000 30 18 12 Repetitive $1,385,000 28 15 11 Continuous $1,660,000 25 15 10 Determine the most economical…
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