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 for Random 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

Answer rating: 100% (QA)

January17 to December18 January19 to December19 Regression to D... View the full answer