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12 December, 01:17

The managerial accountant at Organic Beverage Factory used spreadsheet software to run a regression analysis scenario and compile the following monthly cost dа ta: Organic Beverage Factory Intercept coefficient X Variable 1 Coefficient R-square $4,286,652 28.21 0.6521 Which of the following is the correct estimated cost at a level of 8,000 units, based on the results of the regression analysis compiled by the managerial accountant? O A. $225,680 OB. $4,512,332 c. $4,286,652 D. $4,291,869

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  1. 12 December, 01:53
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    B. $4,512,332

    Explanation:

    The computation of the correct estimated cost at a level of 8,000 units is shown below:

    Given that

    Intercept coefficient = $4,286,652

    Variable 1 Coefficient = $28.21

    R-square = 0.6521

    Estimated cost at a level = 8,000 units

    So, the regression equation is

    $4,286,652 + $28.21X

    For 8,000, the cost equation is

    = Intercept + (X variable coefficient * units

    = $4,286,652 + $28.21 * 8,000 units

    = $4,512,332
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