Chapter $5$ Problem $1$: $($please answer all "Required" in each problem$)$ Garfield Company manufactures a popular brand of dog repellant known as DogGone It$,$ which it sells in gallon$-$size bottles

with a spray attachment. The majority of Garfield's business comes from orders placed by homeowners who are trying to

keep neighborhood dogs out of their yards. Garfield's operating information for the first six months of the year follows:

Required: $$

Using the high$-$low method, calculate Garfield's total fixed operating costs and variable operating cost per bottle.

Perform a least$-$squares regression analysis on Garfield's data.

Determine how well this regression analysis explains the data.

Using the regression output, create a linear cost equation $(y=a+bx)$ for estimating Garfield's operating costs.

Complete this question by entering your answers in the tabs below.

Determine how well this regression analysis explains the data.

Note: Round your regression statistics to three decimal places and, observation and percentage answer to the nearest whole

number.

Problem$/$picture $2$: Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows:

Required:

Complete Presidio's cost data table.

Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost

data table assuming the company sells each bike for $$640.$

Calculate net operating income $($loss$)$ at each of the sales levels assuming a sales price of $$640.$

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Complete Presidio's cost data table.

Note: Round your Cost per Unit answers to $2$ decimal places.

Problem$/$picture $3$: Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume

parties, and other functions. During its first year of business, the company incurred the following costs:

Dance Creations charges $$31$ for each skirt that it sells. During the first month of operation, it made $1,600$ skirts and sold $1,440.$

Required:

Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month.

Complete a contribution margin income statement for the last month.

Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month.

Complete a full absorption costing income statement.

Suppose next month Dance Creations expects to produce $1,600$ hula skirts and sell $1,700.$ Without recreating the new income

statements, calculate the difference in profit between variable costing and full absorption costing. Which would be higher?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $4$

Required $6$

Complete a contribution margin income statement for the last month.