Problem 1 (35 points)
Random Inc.	Cost data for the last 3 years
	Overhead Costs	Units Produced
January-20	$78,000	5,679		Use regression and show the equation used forRandom to separate overhead into fixed and variable components.
February-20	$91,000	6,751		How much of the change in costs will this equation predict?
March-20	$100,000	7,539
April-20	$78,000	5,335		What is the variable cost per unit for overhead? Round to the nearest cent
May-20	$89,000	6,480
June-20	$93,000	7,630		What is the fixed overhead cost per month? Round to the nearest dollar
July-20	$87,000	6,331
August-20	$94,000	7,998		Random analyzes their other costs and finds the following (in addition to the overhead costs above):
September-20	$81,000	5,943		Direct Mat	Each unit of inventory uses 2 gallons of materials and each gallon costs $3
October-20	$85,000	7,081		Direct Labor	On average a worker can produce 16 units of product in an 8 hour shift and gets paid $200 for that shift (how much per unit?)
November-20	$104,500	7,694			Each month Random spends $27,500 on selling and administration costs
December-20	$104,000	8,903			Sales price for 2023 is estimated at $38 per unit
January-21	$92,000	7,485
February-21	$104,000	9,062
March-21	$96,000	8,189		What is Random's contribution margin per unit? Round to the nearest cent
April-21	$77,000	5,410
May-21	$83,000	6,556		How many units does Random need to sell in a month to break even in 2023?
June-21	$95,000	7,850
July-21	$65,000	4,836		How many units does Random need to sell in a month to make $20,000 of profit before taxes?
August-21	$92,000	6,828
September-21	$77,000	6,221		How much in dollars must Random sell in a month to make $90,000 in profit before taxes?
October-21	$105,000	8,238
November-21	$103,000	7,842
December-21	$96,000	8,086		Show the predicted contribution margin format income statement for January if production and sales are 7,100 units for January 2023
January-22	$84,500	6,887
February-22	$100,000	8,438		Show the predicted contribution margin format income statement for February 2023 if sales increase from January by 200 units.
March-22	$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-22	$79,000	5,639		and makes it so that workers can make 24 in a shift (changes the direct labor per unit)
May-22	$74,000	5,703		Other costs should be consistent with January.
June-22	$81,000	6,455
July-22	$82,000	6,370
August-22	$74,000	5,684
September-22	$72,000	4,906
October-22	$73,000	5,026
November-22	$92,000	7,630
December-22	$82,000	4,014