Question: Analysts for Brazil Brewery have selected the following cost drivers: volume of beer produced (in hectoliters, i.e., 1 hL = 100 L), total amount of
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Required:
a. Using multiple regression, find the cost driver rates for each of the cost drivers.
b. Assuming the following level of cost driver volume for the next month, what is the estimated cost? (Don€™t forget to include the intercept of the regression in your estimate.)
1,650................................... hL of beer produced
25,500................................. kg of raw materials consumed
100...................................... Batches
10,800................................. hL of water consumed
120...................................... CIPs
1.......................................... New product
c. Brazil Brewery is considering a target for water consumption of 5.0 hL water per hL of beer produced. How much would the company have saved in total over the previous 18 months if it had reached this target in the previous 18months?
0100023200001010123 721830627567151590_5 7889101887767888 005 ate $30 002 35 9, 10, 10, 201 7, 19 gaz 59 990 29 005 3-14- 67 2 ,5 ,0 7 5 3 1 2 7 5 5 3 6 1 272551 8 een 89 980 09 2 2 4 5 5 5 5 68 2 3 5 7 59 68 5 3 60 2 9878372 8
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a The regression equation is Costs 25419 13480 Beer Produced 0685 Raw Materials 69724 Batches 0920 W... View full answer
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