a. What is the coefficient of correlation and what does it say about the relationship?
b. What is the coefficient of determination and what does it say about the relationship?
c. What is the equation of this line? ( y = mx + b), where Total Cost = (Variable Cost Per Unit * Units) + Total Fixed Cost.
2. Multiple Regression: Examine the relationship between the number of units produced and the number of production batches and their effect on total manufacturing overhead. Consider the following in your report:
a. What is the coefficient of determination? How did multiple (versus single) regression help/hurt the r-squared?
b. What is the estimated Variable Manufacturing Overhead Per Unit?
c. What is the estimated Total Fixed Manufacturing Overhead?
3. Break-Even Analysis: Calculate the following:
a. What is the average per Unit Direct Materials Cost?
b. What is the average per Unit Direct Labor Cost?
c. Assume variable General and Administrative expenses are $12 per unit. What is the total variable cost per unit?
d. Assume total fixed General and Administrative expenses are $2,000 per month. What is the total fixed cost per month?
e. Assume sales price per unit is $400. What is the Contribution Margin Per Unit?
f. What is the Break Even Point in Units?