Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*) Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables-units shipped, weight shipped, or sales value of units shipped- has the closest relationship with shipping expenses. The following information is available: Weight Sales Value of Shipping Month Units Shipped Shipped (lbs.) Units Shipped Expenses May 10,000 7,500 $350,000 $38,000 June 12,000 8,760 July 15,000 9,200 August 20,000 10,500 432,000 42,000 420,000 50,100 400,000 72,500 September 12,000 7,600 300,000 41,000 October 8,000 6,000 320,000 35,600 Required a. With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses. Complete the r-squared values between each possible independent variable and shipping expenses: Round answers to two decimal places. Units shipped Weight shipped Sale value 0 0 Based on the coefficient of determination, ✰ has the closest relationship with shipping expenses. b. Using the independent variable that appears to have the closest relationship to shipping expenses, develop a cost-estimating equation for total monthly shipping expenses. Round answers to two decimal places. Shipping expenses = $ 0 + $ 0x c. Use the equation developed in requirement (b) to predict total shipping expenses in a month when 14,000 units, weighing 9,380 lbs., with a total sales value of $420,000 are shipped. Round answer to the nearest whole number. $ 0
Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*) Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables-units shipped, weight shipped, or sales value of units shipped- has the closest relationship with shipping expenses. The following information is available: Weight Sales Value of Shipping Month Units Shipped Shipped (lbs.) Units Shipped Expenses May 10,000 7,500 $350,000 $38,000 June 12,000 8,760 July 15,000 9,200 August 20,000 10,500 432,000 42,000 420,000 50,100 400,000 72,500 September 12,000 7,600 300,000 41,000 October 8,000 6,000 320,000 35,600 Required a. With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses. Complete the r-squared values between each possible independent variable and shipping expenses: Round answers to two decimal places. Units shipped Weight shipped Sale value 0 0 Based on the coefficient of determination, ✰ has the closest relationship with shipping expenses. b. Using the independent variable that appears to have the closest relationship to shipping expenses, develop a cost-estimating equation for total monthly shipping expenses. Round answers to two decimal places. Shipping expenses = $ 0 + $ 0x c. Use the equation developed in requirement (b) to predict total shipping expenses in a month when 14,000 units, weighing 9,380 lbs., with a total sales value of $420,000 are shipped. Round answer to the nearest whole number. $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*)
Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables-units shipped, weight shipped, or sales value of units shipped-
has the closest relationship with shipping expenses. The following information is available:
Weight
Sales Value of Shipping
Month Units Shipped Shipped (lbs.) Units Shipped Expenses
May
10,000
7,500
$350,000 $38,000
June
12,000
8,760
July
15,000
9,200
August
20,000
10,500
432,000 42,000
420,000 50,100
400,000 72,500
September
12,000
7,600
300,000 41,000
October
8,000
6,000
320,000 35,600
Required
a. With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses.
Complete the r-squared values between each possible independent variable and shipping expenses:
Round answers to two decimal places.
Units shipped
Weight shipped
Sale value
0
0
Based on the coefficient of determination,
✰ has the closest relationship with shipping expenses.
b. Using the independent variable that appears to have the closest relationship to shipping expenses, develop a cost-estimating equation for total monthly shipping expenses.
Round answers to two decimal places.
Shipping expenses = $
0 + $
0x
c. Use the equation developed in requirement (b) to predict total shipping expenses in a month when 14,000 units, weighing 9,380 lbs., with a total sales value of $420,000 are shipped.
Round answer to the nearest whole number.
$ 0
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 6 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education