Using regression output, with Shoe Sold being the independent variable and Pre Tax Profit being the dependent variable, develop TWO flexible budget formulas that can be used to estimate (i) Total Costs and (ii) Pre Tax Profit Please use accounting terminology when applying it to the regression coefficients for both the above formulas ( Written answer show evidence) Price per shoe 105 SUMMARY OUTPUT Regression Statistics Multiple R 0 912572319 R Square 0 832788237 Adjusted R Square 0 825187702 Standard Error 7911 945252 Observations 24 ANOVA df SS MS F Significance F Regression 1 6 86E 09 6858939675 109 56969 5 22E 10 Residual 22 1 38E 09 62598877 67 Total 23 8 24E 09 Coefficients Standard Error t Stat P value Lower 95 Upper 95 Lower 95 0 Upper 95 0 Intercept 27131 60721 8317 087 3 262152799 0 0035681 44380 2 9883 03 44380 2 9883 03 X Variable 1 38 57091782 3 684807 10 4675542 5 223E 10 30 9291 46 21274 30 9291 46 21274

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Question: Using regression output, with Shoe Sold being the independent variable and Pre-Tax Profit being the dependent variable, develop TWO flexible budget formulas that can be

Using regression output, with Shoe Sold being the independent variable and Pre-Tax Profit being the dependent variable, develop TWO flexible budget formulas that can be used to estimate:

(i) Total Costs and

(ii) Pre-Tax Profit

Please use accounting terminology when applying it to the regression coefficients for both the above formulas. (Written answer - show evidence)

Price per shoe = 105

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.912572319
R Square	0.832788237
Adjusted R Square	0.825187702
Standard Error	7911.945252
Observations	24

ANOVA
	df	SS	MS	F	Significance F
Regression	1	6.86E+09	6858939675	109.56969	5.22E-10
Residual	22	1.38E+09	62598877.67
Total	23	8.24E+09

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-27131.60721	8317.087	-3.262152799	0.0035681	-44380.2	-9883.03	-44380.2	-9883.03
X Variable 1	38.57091782	3.684807	10.4675542	5.223E-10	30.9291	46.21274	30.9291	46.21274

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