Hansaben !Required informationProblem 8-49 Cost Estimation; High-Low Method; Regression Analysis [LO 8-3][The following information applies to the questions displayed below.]Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expensesresulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller,wants to test different forecasting methods and then use the best one to forecast quarterly expenses for 2019. Therelevant quarterly data for the previous three years follow:2016QuarterReturnExpenses2017QuarterReturnExpenses Quarter2018ReturnExpenses1$ 14,1001$ 14,5001$ 15,000212,700213,600213,900313,000313,200313,700415,400415,800416,500The result of a simple regression analysis using all 12 data points yielded an intercept of $13,301.52 and a coefficient forthe independent variable of $151.05. (R-squared = 0.21, SE = $1,098.82.)Part 22. (Hints available) Looking at the graph you prepared for requirement 1, select two representative data points and calculate thequarterly forecast for 2019 using the high-low method.3. Calculate the quarterly forecasts for 2019 using the results of the regression analysis.Complete this question by entering your answers in the tabs below.Required 2 Required 3Looking at the graph you prepared for requirement 1, select two representative data points and calculate the quarterlyforecast for 2019 using the high-low method.ReturnExpenses2019 Quarter1234

High-low method:The high-low method is the method used to segregate the variable cost and the fixed…

relevant quarterly data for the previous three years follow: 2016 Return 2017 Quarter Expenses Quarter Return Expenses 2018 Quarter Return Expenses 1 $14,100 1 $ 14,500 1 $ 15,000 2 12,700 2 13,600 2 13,900 3 13,000 3 13,200 3 13,700 15,400 4 15,800 4 16,500 The result of a simple regression analysis using all 12 data points violded an intere

relevant quarterly data for the previous three years follow: 2016 Return 2017 Quarter Expenses Quarter Return Expenses 2018 Quarter Return Expenses 1 $14,100 1 $ 14,500 1 $ 15,000 2 12,700 2 13,600 2 13,900 3 13,000 3 13,200 3 13,700 15,400 4 15,800 4 16,500 The result of a simple regression analysis using all 12 data points violded an intere

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 29P: Carpetland salespersons average 8,000 per week in sales. Steve Contois, the firms vice president,...

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Your manager would like you to conduct sensitivity analysis to see how changing both the price and unit cost of a product affect profits. The following data is provided to you. Which of the following actions needs to be completed before building a data table? 26 27 Price 28 Demand 29 Unit cost 30 Fixed cost 31 Revenue 32 Variable cost 33 Profit B с 50.00 28,000.0 12.00 D E Copied Cells 50.0 62,000.0 1,400,000.0=C28 C27 336,000.0=C28 C29 1,798,000.0 SUM(C31,C32.C30) Select one: The incorrect cells have been 'copied' and this will result in a 12.0
Required information Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11] [The following information applies to the questions displayed below.] Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility that cleans each rental car before releasing it to another customer. Management believes the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns 2,500 2,500 2,800 3,100 3,700 5,100 5,600 5,600 4,800 4,100 Fixed cost per month Variable cost per rental return 2,200 3,000 Car Wash Costs $ 11,500 $ 13,400 $ 12,300 $ 15,000 $ 16,700 $ 24,300 $ 22,700 $ 23,400 $ 23,300 $ 22,600 $ 11, 200 $ 16,000 Exercise 5A-2 Part 2 (Algo) 2. Using least-squares regression, estimate the variable cost per rental return and the…
Required information Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11] [The following information applies to the questions displayed below.] Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility that cleans each rental car before releasing it to another customer. Management believes the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns 2,400 2,500 2,800 3,100 3,700 5,100 5,600 5,600 4,700 4,100 2,200 2,900 Exercise 5A-2 Part 2 (Algo) Car Wash Costs. $ 11,300 $ 13,300 $ 12,100 $ 14,700 $ 16,500 $ 23,900 $ 22,500 $ 22,900 $ 23,100 $ 22,000 $ 11,000 $ 15,300 2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. Note: Round…
Using your answer to Requirement 1, assume that Reshier Company is considering dropping any model with a negative product margin. What are the alternatives? Which alternative is more cost effective and by how much? (Assume that any traceable fixed costs can be avoided.) Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_3 to operating income 3. What if Reshier Company can only avoid 182 hours of engineering time and 4,800 hours of setup time that are attributable to Model 1? How does that affect the alternatives presented in Requirement 2? Which alternative is more cost effective and by how much? Do NOT round interim calculations and, if required, round your answer to the nearest dollar. will add $fill in the blank 8723bbfe4004028_5 to operating income
Computing breakeven sales and sales needed to earn a target profit; performing sensitivity analysis This problem continues the Piedmont Computer Company situation from Chapter 19. Piedmont Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted-average sales price per unit is $750 and the weighed-average variable cost per unit is $450. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $156,000. Requirements What is the number of units that must be sold each month to reach the breakeven point? If the company currently sells 945 units per month, what is the margin of safety in units and dollars? If Piedmont Computer Company desires to make a profit of $15,000 per month, how many units must be sold? Piedmont Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $90,000 per month, but the…
14 Howard Cooper, the president of Finch Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 36,000 hours of services in Year 3. Required Required Required A B с $ b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Finch charges customers $80 per hour, the firm can achieve 45,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…
Carlyle Capital Company offers financial services to its clients. Recently, Carlyle has experienced rapid growth and has increased both its client base and the variety of services it offers. The company is becoming concerned about its rising costs, however, particularly related to technology overhead. After some study, Carlyle determines that its variable and fixed technology overhead costs are both driven by the processing time involved in meeting client requests. This is typically measured in CPU units of their computer usage. Carlyle’s measure of output is the number of client interactions in a given period. Q.Comment on Carlyle Capital’s overhead variances. In your view, is the firm right to be worried about its control over technology spending?
Carlyle Capital Company offers financial services to its clients. Recently, Carlyle has experienced rapid growth and has increased both its client base and the variety of services it offers. The company is becoming concerned about its rising costs, however, particularly related to technology overhead. After some study, Carlyle determines that its variable and fixed technology overhead costs are both driven by the processing time involved in meeting client requests. This is typically measured in CPU units of their computer usage. Carlyle’s measure of output is the number of client interactions in a given period. Q.Calculate the variable overhead spending and efficiency variances, and indicate whether each is favorable (F) or unfavorable (U).
the Victor Inc. as a custom because of COVID-19? 2. Please calculate the operating income(loss) if Scenario drop Victor Inc. as a custom. 3. Should Scenario keep Victor as a customer or just drop it? Why? Question 5: Please use an example to explain the opportunity-cost concept and why it is used in decision-making. tions: On DELL
1) You should only use the past to forecast the future: True False 2) Choose the best answer. 3 uses of forecast and their time frames, Use the system: annually daily/weekly hourly as required monthly 3) Choose the best match. Judgmental methods, Sales force opinions: questionnaires or focus groups technological forecasting use demand for a similar product pool opinions of high-level executives based on direct customer contact 4) Choose the answer with the best match. Elements of a Good Forecast, Timely: The degree of accuracy of the forecast should be stated The forecasting horizon must cover the time necessary to implement possible changes so that its results can be used The units measured should be useful to those using the forecast It should work consistently The benefits should outweigh the costs
APPLY THE CONCEPTS: Margin of Safety Margin of safety can allow you to see how much padding there is for your company between profit and loss. If this number is great, it may indicate that your company is performing very well. If this number is small, it may be worth looking into possible remediation. Consider the following pricing and cost information: Price and Cost Information Amount Selling Price per Unit $450 Variable Cost per Unit $400 Total Fixed Cost $70,000 For the upcoming period, the company projects that it will sell 2,000 units. Considering that the company has a unit break-even point of 1,400 units, what is the margin of safety in terms of both units and sales revenue? Round your answers to two decimal places, if necessary. Margin of Safety in Units Margin of Safety in Sales Revenue = $
Problem Solving.Determine for what is asked. Show your solution legibly. Improper solution will not be credited. Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00 Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, find ABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented.C. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million