Blog

Consider the data Repair. Develop the estimated simple linear regression equation to predict the repair time (y) given the type of repair (x1). x1 = 0 if the type of repair is mechanical and 1 if the repair is electrical. Does the equation developed in part (a) provide a good fit?

The prices of Rawlston, Inc. stock (y) over a period of 12 days, the number of shares (in 100s) of company’s stocks sold (x1), and the volume of exchange (in millions) on the New York Stock Exchange (x2) are shown in the data set Stocks. Estimate an equation that can be used to predict the price of the stock given x1 and x2. Interpret the coefficient of x1 that you have found.

Monthly total production costs and the number of units produced at a local company over a period of 10 months are shown in the data set ProductionCost. Use a simple linear regression model to develop an estimated regression equation to best describes the relationship between X and Y.

Bryan Inc. manufactures special IU T-shirts. The factory can produce up to 8,000 T-shirts a month and is currently producing 6,000 a month.  The normal selling price for each T-shirt is $40 each.  The costs currently attributed to the T-shirts is as follows: Cost of materials $7 per T-shirt Cost of production labor $6 per T-shirt Allocated plant-wide overhead $8 per T-shirt Bryan Inc. received a one-time special-order request from a new customer asking to purchase 1,000 T-shirts at a special price of $15 each. Should Bryan Inc. accept this special order?

Q202

When comparing an income statement prepared using US GAAP rules versus a managerial contribution margin income statement……

How does a change in total fixed costs (perhaps due to a significant change in production levels) effect on the total contribution margin?  

Q154  

Which is riskier for a new company that expects sales to be very low for the first few years?   

An example of a sunk cost is: