Answered: Required: 3. Using the high-low method,…

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter17: Acquiring And Implementing Accounting Information Systems

Section: Chapter Questions

Problem 3P: JW Office Supplies, Inc., is a wholesale distributor of office supplies. It sells pencils and pens,...

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Transcribed Image Text:Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows: Month January February March April Operating Cost Number of Bottles Sold 1,080 $ 10,570 1,330 15,670 1,850 16,050 2,480 19,680 3,490 27,350 3,610 34,750 May June Required: 3. Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. 4. Perform a least-squares regression analysis on Garfield's data. 5. Determine how well this regression analysis explains the data. 6. Using the regression output, create a linear cost equation (y= a + bx) for estimating Garfield's operating costs. Complete this question by entering your answers in the tabs below. Required 3 Required 4 Required 5 Required 6 Determine how well this regression analysis explains the data. Note: Round your regression statistics to three decimal places and, observation and percentage answer to the nearest whole number. Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations From the regression output, number of bottles explains about 6 % of the variability in Garfield's total cost < Required 4 Required 6 >

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