Using Data to Analyze Decisions on special Order

Kendrick Anderson Furniture Maker, LLC creates custom tables in Atlanta. Assume that you are the product manager for the Living Room Table segment. Your company is planning to meet with a local not$-$for$-$profit company that is presenting a proposal for the production of tables for its senior center. Monthly manufacturing costs for the Living Room Table segment are included in file linked here. Assume that the data includes no outliers.

Required

a$.$ What is the weighted average cost to manufacture a living room table based upon the historical data provided? &

b$.$ Using regression analysis, determine the cost$-$estimating equation to manufacture dining room tables. Hint: Under the Data tab, click on Data analysis, Regression, and select the cells for the $Y$ Range and $x$ Range.

Note: Round your answers to two decimal places.

Cost estimating equation: $Y=$$ $$

$$

$x$

c$.$ What is the lowest price that your company would accept without making the company worse off? $?$

d$.$ When you compile information in advance of the meeting, indicate which of the following questions would not be a priority.

Will the company have the capacity to take on the special order without displacing other sales?

Is the special order an isolated sale?

What are the components of fixed costs?

Will current customers have knowledge of the discounted sale?

$3$ would not be a priority.

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