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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 neighborho dogs out of their yards. Garfield's operating information for the first six months of the year follows: Month January Operating Cost Number of Bottles Sold 1,020 $ 10,710 February 1,450 15,660 March 1,740 15,900 April 2,350 19,890 May 3,360 27,490 June 3,800 34,800

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 neighborho dogs out of their yards. Garfield's operating information for the first six months of the year follows: Month January Operating Cost Number of Bottles Sold 1,020 $ 10,710 February 1,450 15,660 March 1,740 15,900 April 2,350 19,890 May 3,360 27,490 June 3,800 34,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Operating Cost Month January February March April May June Number of Bottles Sold 1,020 $ 10,710 1,450 15,660 1,740 15,900 2,350 19,890 3,360 27,490 3,800 34,800 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. Redetired 3 Required 4 Required 5 Required 6 Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. Note: 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 $ 8.66 Fixed Cost $ 1,877 4. Required 3 Required 4 >
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: Operating Cost Month January February March April May June Number of Bottles Sold 1,020 $ 10,710 1,450 15,660 1,740 15,900 2,350 19,890 3,360 27,490 3,800 34,800 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. Redetired 3 Required 4 Required 5 Required 6 Using the high-low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle. Note: 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 $ 8.66 Fixed Cost $ 1,877 4. Required 3 Required 4 >
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