Required information [The following information applies to the questions displayed below.] Caiman Distribution Partners is the...

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Required information [The following information applies to the questions displayed below.] 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 Operating Cost $1,582,000 201,000 1,380,000 872,000 210,000 Utilities Warehouse labor 838,000 Equipment leases 756,000 Data processing equipment 962,000 Other Total 835,000 $7,636,000 Behavior All variable $ 155,000 Fixed $178,000 Fixed $ 542,000 Fixed $106,000 Fixed $ 147,000 Fixed $ 611,000 Fixed All fixed $345,000 Fixed 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 Cases 247,000 Price Index Operating Costs 114 2 352,000 109 $5,699,171 5,806,670 3 248,000 127 5,849,937 4 421,000 128 5,927,649 5 347,000 114 5,939,167 6 371,000 131 6,043,396 7 441,000 127 5,918,527 8 469,000 143 6,133,900 9 330,000 134 6,126,162 10 403,000 140 6,186,657 11 409,000 133 12 470,000 145 6,208,831 6,362,287 These data are considered representative for both past and future operations in Brazil. e-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. Required information [The following information applies to the questions displayed below.] 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 Operating Cost $1,582,000 201,000 1,380,000 872,000 210,000 Utilities Warehouse labor 838,000 Equipment leases 756,000 Data processing equipment 962,000 Other Total 835,000 $7,636,000 Behavior All variable $ 155,000 Fixed $178,000 Fixed $ 542,000 Fixed $106,000 Fixed $ 147,000 Fixed $ 611,000 Fixed All fixed $345,000 Fixed 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 Cases 247,000 Price Index Operating Costs 114 2 352,000 109 $5,699,171 5,806,670 3 248,000 127 5,849,937 4 421,000 128 5,927,649 5 347,000 114 5,939,167 6 371,000 131 6,043,396 7 441,000 127 5,918,527 8 469,000 143 6,133,900 9 330,000 134 6,126,162 10 403,000 140 6,186,657 11 409,000 133 12 470,000 145 6,208,831 6,362,287 These data are considered representative for both past and future operations in Brazil. e-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.

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