Chap4AsgnBUS4113

Chap4AsgnBUS4113 - Problem 2: You run a regression analysis...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Amberton University BUS 4113 – Accounting and Finance for Mangers Chapter 4 Assignment Professor: Dr. Jonathan Schultz Name: Date: 6/26/2010 Short-Answer Questions : Label whether each of the following costs is most likely fixed (F) or variable (V). Direct materials V Factory rent F Sales commissions expense V Direct labor V Depreciation on factory building F Take Home Problems : Problem 1: Sabina and Associates has the following current year costs: Variable costs $4 per unit Fixed costs $20,000 Next year, the company plans to enter into an arrangement with a supplier that will result in a 15% decrease in variable costs. They also plan on reducing their rental space, which will decrease fixed costs by 10%. Required : A. What will be the new equation to predict total costs? [4 – (4 X 15%) ]x + [20,000 – (20,000 X 10%)] = 3.4x + 18,000 B. If next year's production is expected to be 10,000 units, what will be total estimated costs? 3.4 X 10,000 + 18,000 = 52,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Problem 2: You run a regression analysis and receive the following results: Multiple R .39429 R Square .15547 Adjusted R Square .14964 Standard Error .44416 Analysis of Variance DF Sum of Squares Mean Square Regression 1 5.26588 5.26588 Residual 145 28.60536 .19728 F = 26.69262 Signif F = .0000 Variables in the Equation Variable Coefficients Standard error t Stat P-value X Variable 1 11.0300 .021000 5.166 .0000 Intercept 8833.0700 .090000 9.751 .0000 Required : A. What is the fixed cost in this regression analysis? 8833.07 B. What is the variable cost per unit? 11.03 C. Prepare the cost equation based upon these results. 8833.07 + 11.03x D. Does this regression equation "fit" the data well? What information did you examine to answer this question? No. R square = 0.15. Only .15 is of the variation in overhead coast is explained by increasing or decreasing. The independent variable is not reliable....
View Full Document

This note was uploaded on 02/03/2011 for the course BUS 3101 taught by Professor Loyd during the Spring '09 term at Dallas.

Page1 / 2

Chap4AsgnBUS4113 - Problem 2: You run a regression analysis...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online