SomethingNew is a small one-person company that provides elaborate andimaginative wedding cakes to order for very large wedding receptions. The owner ofthe company would like to understand the cost structure of the company and hascompiled the following records of activity and costs incurred. The owner believes thatthe number of weddings catered is the best measure of activity.МonthWeddingsCosts IncurredJanuaryFebruary3Р3,800Р3,600MarchP4,000P4,300AprilМay9.12P4,500June20P5,200Using the least-squares regression method, estimate the variable cost per wedding andthe total fixed cost per month. (Round off the variable cost per wedding to the nearestcent and the total fixed cost to the nearest dollar.)

Answered: Image /qna-images/answer/9b7ffce3-1c53-40aa-923a-844a861a9358.jpg

Answered: Using the least-squares regression…

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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More real estate Consider the Albuquerque home sales from Exercise 29 again. The regression analysis gives the model Price = 47.82 + 0.061 Size. a) Explain what the slope of the line says about housing prices and house size. b) What price would you predict for a 3000-square-foot house in this market? c) A real estate agent shows a potential buyer a 1200-square- foot home, saying that the asking price is $6000 less than what one would expect to pay for a house of this size. What is the asking price, and what is the $6000 called?
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The number of properties newly listed with a real estate agency in each quarter over the last four years is given below. Assume the time series has seasonality without trend. Quarter 1 2 3 4 Year 1 73 89 123 92 Year 2 81 87 115 95 Year 3 76 91 108 87 Year 4 77 88 120 97 a. Develop the optimization model that finds the estimated regression equation that minimize the sum of squared error. b. Solve for the estimated regression equation. c. Forecast the four quarters of Year 5. *Please solve in excel
For the following two alternatives, if the MARR is 10% per year (a)which one has a shorter payback period (b) which one do you select if you use the PW analysis. (c) is your selection different in (a) and (b)? Why? (d) use Spreadsheet to solve a and b. Alternative A: initial cost = $300,000 Revenue = $60,000 Alternative B: initial costs = $300,000 Revenue starts from n=1 at $10,000 and increases by $15,000 per year The expected life is 10 years for each alternative.
In this part of the project, you will be purchasing the home you chose in the Budget Project. You will need to obtain a loan from a financial institution since you cannot pay cash for your home. You will be researching three different loan scenarios and determining which loan option best fits your situation and needs. Purchase price of the home you chose from the Budget Project: ________$431,873______ Part 1: Financing your home Loan Scenario 1: In this scenario, your financial institution is offering you a 30-year fixed mortgage with a 20% down payment at a 3.43% fixed rate. Determine the following: Calculate the down payment for this loan. How much will you need to finance from the bank for this loan? What is your monthly payment? Use technology or the monthly payment formula in your text to get the monthly payment for this loan. What is the total cost of the loan over 30 years? How much of this cost is interest? What is the total you will expect to pay at closing for this loan…

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Using the least-squares regression method, estimate the variable cost per wedding and the total fixed cost per month. (Round off the variable cost per wedding to the nearest cent and the total fixed cost to the nearest dollar.)