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1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y- a+ bX. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure?

1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y- a+ bX. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure?

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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Problem 3 Ana Lee has just been appointed director of recreation programs for Highland Park, a rapidly growing community in Connecticut. In the past, the city has sponsored a number of softball leagues in the summer months. From the city's cost records, Ana has found the following total costs associated with the softball leagues over the last several years: Number of Leagues Year Total Cost P13,000 7,000 10,500 14,000 10,000 2017. ............. 2018. 2 2019 2020 2021 4 6 3 Each league requires its own paid supervisor and paid umpires as well as printed schedules and other copy work. Therefore, Ana knows that some variable costs are associated with the leagues. She would like to know the amount of variable cost per league and the total fixed cost per year associated with the softball program. This information would help her for planning purposes. 1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y - a + bx. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? 4. Prepare a scattergraph, and fit a regression line to the plotted points using the cost formula expressed in (2) above.
Transcribed Image Text:Problem 3 Ana Lee has just been appointed director of recreation programs for Highland Park, a rapidly growing community in Connecticut. In the past, the city has sponsored a number of softball leagues in the summer months. From the city's cost records, Ana has found the following total costs associated with the softball leagues over the last several years: Number of Leagues Year Total Cost P13,000 7,000 10,500 14,000 10,000 2017. ............. 2018. 2 2019 2020 2021 4 6 3 Each league requires its own paid supervisor and paid umpires as well as printed schedules and other copy work. Therefore, Ana knows that some variable costs are associated with the leagues. She would like to know the amount of variable cost per league and the total fixed cost per year associated with the softball program. This information would help her for planning purposes. 1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y - a + bx. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? 4. Prepare a scattergraph, and fit a regression line to the plotted points using the cost formula expressed in (2) above.
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Problem 3 Ana Lee has just been appointed director of recreation programs for Highland Park, a rapidly growing community in Connecticut. In the past, the city has sponsored a number of softball leagues in the summer months. From the city's cost records, Ana has found the following total costs associated with the softball leagues over the last several years: Number of Leagues Year Total Cost P13,000 7,000 10,500 14,000 10,000 2017. ............. 2018. 2 2019 2020 2021 4 6 3 Each league requires its own paid supervisor and paid umpires as well as printed schedules and other copy work. Therefore, Ana knows that some variable costs are associated with the leagues. She would like to know the amount of variable cost per league and the total fixed cost per year associated with the softball program. This information would help her for planning purposes. 1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y - a + bx. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? 4. Prepare a scattergraph, and fit a regression line to the plotted points using the cost formula expressed in (2) above.
Transcribed Image Text:Problem 3 Ana Lee has just been appointed director of recreation programs for Highland Park, a rapidly growing community in Connecticut. In the past, the city has sponsored a number of softball leagues in the summer months. From the city's cost records, Ana has found the following total costs associated with the softball leagues over the last several years: Number of Leagues Year Total Cost P13,000 7,000 10,500 14,000 10,000 2017. ............. 2018. 2 2019 2020 2021 4 6 3 Each league requires its own paid supervisor and paid umpires as well as printed schedules and other copy work. Therefore, Ana knows that some variable costs are associated with the leagues. She would like to know the amount of variable cost per league and the total fixed cost per year associated with the softball program. This information would help her for planning purposes. 1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y - a + bx. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? 4. Prepare a scattergraph, and fit a regression line to the plotted points using the cost formula expressed in (2) above.
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thank you for the answer I appreciate it a lot. could I have the remaining parts forthis question

Problem 3 Ana Lee has just been appointed director of recreation programs for Highland Park, a rapidly growing community in Connecticut. In the past, the city has sponsored a number of softball leagues in the summer months. From the city's cost records, Ana has found the following total costs associated with the softball leagues over the last several years: Number of Leagues Year Total Cost P13,000 7,000 10,500 14,000 10,000 2017. ............. 2018. 2 2019 2020 2021 4 6 3 Each league requires its own paid supervisor and paid umpires as well as printed schedules and other copy work. Therefore, Ana knows that some variable costs are associated with the leagues. She would like to know the amount of variable cost per league and the total fixed cost per year associated with the softball program. This information would help her for planning purposes. 1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y - a + bx. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? 4. Prepare a scattergraph, and fit a regression line to the plotted points using the cost formula expressed in (2) above.
Transcribed Image Text:Problem 3 Ana Lee has just been appointed director of recreation programs for Highland Park, a rapidly growing community in Connecticut. In the past, the city has sponsored a number of softball leagues in the summer months. From the city's cost records, Ana has found the following total costs associated with the softball leagues over the last several years: Number of Leagues Year Total Cost P13,000 7,000 10,500 14,000 10,000 2017. ............. 2018. 2 2019 2020 2021 4 6 3 Each league requires its own paid supervisor and paid umpires as well as printed schedules and other copy work. Therefore, Ana knows that some variable costs are associated with the leagues. She would like to know the amount of variable cost per league and the total fixed cost per year associated with the softball program. This information would help her for planning purposes. 1. Using the least-squares regression method, compute the variable cost per league and the total fixed cost per year for the softball program. 2. Express the cost data derived in (1) above in the linear equation form Y - a + bx. 3. Assume that Ana would like to expand the softball program during the coming year to involve a total of seven leagues. Compute the expected total cost for the softball program. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? 4. Prepare a scattergraph, and fit a regression line to the plotted points using the cost formula expressed in (2) above.
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