Boxes- R- Us Manufactures Various Cardboard Boxes

question 49

Essay

Boxes- R- Us manufactures various cardboard boxes. Because the efforts of manufacturing are approximately equal between labor and machinery, management is considering other possible cost drivers. By considering different cost drivers, it is anticipated that the estimating process can be improved. The following cost estimating equations with their r2 values have been determined for 20X0:
1. x = gluing time y = $29,000 + $10x r2 = 0.75 2. x = labor y = $12,000 + $15x r2 = 0.50 3. x = machinery y = $15,000 + $5x r2 = 0.45
Required:
a. Which equation should be selected for the analysis?
b. What are other factors that should be included in the selection of the estimating equation?

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Definitions:

Mainstream Media

Media outlets that are widely accepted and consumed by a large portion of the general population, often reflecting prevailing or dominant cultural values and norms.

Sociological Sensibility

The ability to perceive and understand social dynamics, patterns, and nuances in everyday life.

Theoretical Perspectives

Theoretical perspectives are fundamental assumptions or frameworks that guide research, providing concepts and methodologies for analysis.

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