TJ's Cheese Cake Factory, Inc. sells original cheese cake for $16 each. The company provided thefollowing units and total cost data concerning its cake sales for each month during 2011:Costa.b.JanuaryFebruaryMarchC.d.AprilMayJuneJulyAugustSeptemberOctoberNovemberDecember55,00059,00060,00064,00067,00071,00074,00077,00075,00068,00062,00073,000Units2,5002,8003,0004,2004,5005,500Use the linear regression method to estimate fixed and variable costs.Interpret and evaluate your regression model and results. Write out the cost formula.Estimate total costs in a month when 6,000 cakes are produced and sold.Estimate total profit in a month when 6,000 cakes are produced and sold.e.You are working on the budget for October 2012 and expect 10,000 cakes will be producedand sold. Estimate total costs in a month when 10,000 cakes are produced and sold. Will you usethe estimated cost in your budget? Why?f.How does linear regression differ from the high-low method in estimating fixed andvariable costs? Discuss the pros and cons of each.6,5007,5007,0004,5003,1006,500

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TJ's Cheese Cake Factory, Inc. sells original cheese cake for $16 each. The company provided the following units and total cost data concerning its cake sales for each month during 2011: Cost January February March April May June July August September October November December 55,000 59,000 60,000 64,000 67,000 71,000 74,000 77,000 75,000 68,000 62,000 73,000 Units 2,500 2,800 3,000 4,200 4,500 5,500 6,500 7,500 7,000 4,500 3,100 6,500

TJ's Cheese Cake Factory, Inc. sells original cheese cake for $16 each. The company provided the following units and total cost data concerning its cake sales for each month during 2011: Cost January February March April May June July August September October November December 55,000 59,000 60,000 64,000 67,000 71,000 74,000 77,000 75,000 68,000 62,000 73,000 Units 2,500 2,800 3,000 4,200 4,500 5,500 6,500 7,500 7,000 4,500 3,100 6,500

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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