Question: Mac Renovations has been using the home's interior square feet as his cost driver in estimating costs. It was brought to his attention that a

Mac Renovations has been using the home's interior square feet as his cost driver in estimating costs.
It was brought to his attention that a home's external openings might be a better cost driver in estimating costs.
The following data was gathered from the last 12 houses he had painted.
HouseSquare FeetOpeningsCosts
12,5007$ 2,810
23,15012$ 3,742
32,8008$ 3,100
42,8508$ 3,150
54,75016$ 4,700
62,9508$ 3,225
72,7007$ 2,920
82,5506$ 2,836
92,6007$ 3,242
103,70013$ 4,112
112,6507$ 3,210
123,55012$ 3,965
Compute the scattergraph, the total cost equation, and the r-squared for
each cost driver in estimating costs.
Which cost driver is better and why?
(check figure: square feet variable costs = .86 and openings fixed costs = 1,750.76)

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