Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in...

 

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Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Account Supplies Supervision Truck expense Building leases Utilities Warehouse labor Equipment leases Data processing equipment Other Total Behavior Operating Cost $1,442,000 All variable $139,000 Fixed 221,000 1,190,000 $205,000 Fixed $548,000 Fixed $109,000 Fixed $159,000 Fixed $585,000 Fixed All fixed $372,000 Fixed 862,000 203,000 835,000 757,000 952,000 837,000 $7,299,000 Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. Month 1 23456 3 7 8 9 10 11 12 Cases 243,000 333,000 244,000 403,000 319,000 346,000 376,000 470,000 370,000 432,000 387,000 471,000 Price Index 125 114 120 115 122 124 136 130 140 136 139 131 Operating Costs $5,699,163 5,806,662 5,849,929 5,927,641 5,939,159 6,043,388 5,918,519 6,133,892 6,126,154 6,186,649 6,208,823 6,362,279 These data are considered representative for both past and future operations in Brazil. c-1. Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. c-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. (Round "Intercept" to nearest whole dollar amount. Round the case coefficient to 5 decimal places.) Intercept Cases Req C1 Req C2 > c-1. Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. c-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. (Round variable costs per unit to 5 decimal places. Round the intercept and final answer to the nearest whole dollar amount.) Estimate of operating cost Req C1 Req C2 Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Account Supplies Supervision Truck expense Building leases Utilities Warehouse labor Equipment leases Data processing equipment Other Total Behavior Operating Cost $1,442,000 All variable $139,000 Fixed 221,000 1,190,000 $205,000 Fixed $548,000 Fixed $109,000 Fixed $159,000 Fixed $585,000 Fixed All fixed $372,000 Fixed 862,000 203,000 835,000 757,000 952,000 837,000 $7,299,000 Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. Month 1 23456 3 7 8 9 10 11 12 Cases 243,000 333,000 244,000 403,000 319,000 346,000 376,000 470,000 370,000 432,000 387,000 471,000 Price Index 125 114 120 115 122 124 136 130 140 136 139 131 Operating Costs $5,699,163 5,806,662 5,849,929 5,927,641 5,939,159 6,043,388 5,918,519 6,133,892 6,126,154 6,186,649 6,208,823 6,362,279 These data are considered representative for both past and future operations in Brazil. c-1. Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. c-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. (Round "Intercept" to nearest whole dollar amount. Round the case coefficient to 5 decimal places.) Intercept Cases Req C1 Req C2 > c-1. Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients. c-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. (Round variable costs per unit to 5 decimal places. Round the intercept and final answer to the nearest whole dollar amount.) Estimate of operating cost Req C1 Req C2

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