Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells i

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells i

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 Number of Bottles Sold Operating Cost January 1,060 $ 10,780 February 1,410 15,730 March 1,790 15,990 April 2,500 19,530 May 3,490 27,740 June 3,790 34,890

Required:
3. Using the high-low method, calculate Garfield’s total fixed operating costs and variable operating cost per bottle. (Do not round your intermediate calculations. Round your variable cost per unit answer to 2 decimal places and fixed cost answer to the nearest whole number.)

Variable cost per unit: 8.83

fixed cost : 1420

4. Perform a least-squares regression analysis on Garfield’s data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.)

coefficients

intercept:

X variable 1:

5. Determine how well this regression analysis explains the data. (Round you regression statistics to three decimal places and your 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 % of the variability in Garfield’s total cost.

6. Using the regression output, create a linear cost equation (y = a + bx) for estimating Garfield’s operating costs. (Round your answers to 3 decimal places.)

total cost = + (Number of bottles)

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