Chapter 6.A, Problem 5E

George Caloz&Freres, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company’s products, a platinmn diving watch. Goes through an etching process. The company has recorded etching costs as follows over the last six weeks:
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week.

Required:

1. Prepare a scattergraph plot. (PIot etching costs on the vertical axis and units on the horizontal axis)
2. Using the least-squares regression method estimate the variable etching cost per unit and the total fixed etching cost per week, Express these estimates in the form Y= a + bX.
3. If the company processes five units next week, what would be the expected total etching cost? (Round your answer to the nearest cent.)