Vinubhai Problem 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:2016Quarter2018ReturnExpenses QuarterReturnExpensesReturnExpenses2017Quarter1$ 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 2Required 3Calculate the quarterly forecasts for 2019 using the results of the regression analysis. (Do not round intermediatecalculations. Round your final answers to two decimal places.)Regression One2019 QuarterPredictedExpenses12234

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

2. (Hints available) Looking at the graph you prepared for requirement 1, select two representative data points and calculate the quarterly forecast for 2019 using the high-low method. 3. Calculate the quarterly forecasts for 2019 using the results of the regression analysis.

2. (Hints available) Looking at the graph you prepared for requirement 1, select two representative data points and calculate the quarterly forecast for 2019 using the high-low method. 3. Calculate the quarterly forecasts for 2019 using the results of the regression analysis.

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 24P: The manager of an automobile dealership is considering a new bonus plan designed to increase sales...

See similar textbooks

Related questions

Q: why are all the answerer are wrong please help

A: Inventory valuation method includes: First-in, first-out (FIFO) Last-in, first-out (LIFO) Weighted…

Q: Yuduryhej rjj

A: feel free to ask me any question within my capacity and I'm willing to help.

Q: What is Glass-Steagall Act?

A: Glass-Steagall Act splits up the investment and commercial banking segments of an investment bank.

Q: anuty What general internal control v

A: Given case is: All-Around Sound Co. discovered a fraud whereby one of its front office…

Q: Prepare a classified balance sheet at November 30. (List current assets in order of liquidity.)…

A: Balance Sheet lists all the permanent account in the form of Assets = Liabilities + Stockholders'…

Q: Illustrate the Guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: Munoz Construction Company expects to build three new homes during a specific accounting period. The…

A: Particulars Cost drivers Total Home - 1 Home - 2 Home -3 Fringe benefits (76 : 103 : 176) Direct…

Q: What is the approximate rate of delinquency, and is the rate of delinquency increasing or not?

Q: part b is incorrect. Can you rework it?

A: Here,Quarter Dividend is $1.50Growth Rate is 6.25%Required Return is 9%Quarterly Required Return is…

Q: I, J, K

A: i. Payment of interest would include an outflow of cash and also an increase in interest expense.

Q: Define Ethics.

A: Ethics are a set of moral principles they affect how people in a society make decisions and how…

Q: Thornton Transport Company divides its operations into four divisions. A recent income statement for…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Costs assigned to production: Direct Total Materials Conversion Inventory in process, August 1 $…

A: Particular Direct Material Conversion Total Inventory in process $3479…

Q: What is ex-rights day?

A: When the company announced rights issue for the existing shareholders of the company to participate…

Q: I need help

A: Variance in $ = Revenue in Feb'13 - Revenue in Feb'12 Variance in % = (Variance in $) / Revenue in…

Q: Munoz Books buys books and magazines directly from publishers and distributes them to grocery…

A: a) Complete the schedule,

Q: What is the unequal life problem, under what conditions is it relevant, and how should it be dealt…

A: Capital budgeting is the technique used for finding the profitability and liquidity of investment…

Question

Vinubhai

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Explain the high-low method

VIEW

Step 2: Calculate variable and fixed cost

VIEW

Step 3: Calculate quarterly forecasts for 2019

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Question 3:salalah Company's financial information is given in the table below. Year 2020 Sales (OMR) Fixed Costs 445000 Variable Costs: 105000 245000 2021 500000 150000 280000 You are required to calculate the following values for each year. The years are independent of each other. a) P/V ratio, b) В.Е.Р. c) Sales required to earn a profit of OMR 45000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 300000.
Please do not give solution in image format thanku
Need answer the accounting question not use ai
please answer with complete solution
Give me correct answer the accounting question
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…
Need help with this accounting question
QUESTION 3 REQUIRED Use the information provided below to answer the following questions independently: 3.1 Calculate the margin of safety (expressed in units). 3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. 3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity. 3.4 Calculate the number of units that must be sold to earn a net profit of R150 per unit. 3.5 Calculate the break-even quantity if the selling price is reduced by R50 per unit and the fixed manufacturing costs decrease by R22 000. INFORMATION The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed…
Solve this general accounting question
General accounting question
3.1 REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity. 3.1.2 Break-even value using the marginal income 3.1.3 Margin of safety 3.1.4 Total Marginal Income and Net Profit/Loss if the sales price is reduced to R90 per unit.INFORMATION Dynamo Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: Sales volume 20 000 units Selling price per unit R100 Variable manufacturing cost per unit R50 Variable marketing cost per unit 10% of the unit selling price Fixed manufacturing cost R400 000 Fixed administration and marketing costs R200 000
The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period. a. Develop the null and alternative hypotheses most appropriate for this situation. b. Comment on the conclusion when H0 cannot be rejected. c. Comment on the conclusion when H0 can be rejected.