Problem 1 (35 points)
Random Inc.	Cost data for the last 3 years
	Overhead Costs	Units Produced
January-17	$78,000	5,679		Use regression and show the equation used forRandom to separate overhead into fixed and variable components.
February-17	$91,000	6,751		How much of the change in costs will this equation predict?
March-17	$100,000	7,539
April-17	$78,000	5,335		What is the variable cost per unit for overhead? Round to the nearest cent
May-17	$89,000	6,480
June-17	$93,000	7,630		What is the fixed overhead cost per month? Round to the nearest dollar
July-17	$87,000	6,331
August-17	$94,000	7,998		Random analyzes their other costs and finds the following (in addition to the overhead costs above):
September-17	$81,000	5,943		Direct Mat	Each unit of inventory uses 2 gallons of materials and each gallon costs $3
October-17	$85,000	7,081		Direct Labor	On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift
November-17	$104,500	7,694			Each month Random spends $26,500 on selling and administration costs
December-17	$104,000	8,903			Sales price for 2021 is estimated at $36 per unit
January-18	$92,000	7,485
February-18	$104,000	9,062
March-18	$96,000	8,189		What is the contribution margin per unit? Round to the nearest cent
April-18	$77,000	5,410
May-18	$83,000	6,556		How many units does Random need to sell in a month to break even in 2021?
June-18	$95,000	7,850
July-18	$65,000	4,836		How many units does Random need to sell in a month to make $25,000 of profit before taxes?
August-18	$92,000	6,828
September-18	$77,000	6,221		How much in dollars must Random sell in a month to make $100,000 in profit before taxes?
October-18	$105,000	8,238
November-18	$103,000	7,842
December-18	$96,000	8,086		Show the predicted contribution margin format income statement for January if production and sales are 7,100 units for January 2021
January-19	$84,500	6,887
February-19	$100,000	8,438		Show the predicted contribution margin format income statement for February 2021 if sales increase from January by 200 units.
March-19	$83,000	5,829		Also in February, selling costs are increased by $2,000/month, a new machine increases fixed overhead by $6,000
April-19	$79,000	5,639		and makes it so that workers can make 24 in a shift (changes the direct labor per unit)
May-19	$74,000	5,703		Other costs should be consistent with January.
June-19	$81,000	6,455
July-19	$82,000	6,370
August-19	$74,000	5,684
September-19	$72,000	4,906
October-19	$73,000	5,026
November-19	$92,000	7,630
December-19	$82,000	4,014