Cross Distribution Company uses two different independent variables (number of orders and weight of orders)in two different equations to evaluate costs of the packaging department.The most recent results of the two regressions are as follows:
Number of orders:
Weight of orders:
There were twenty degrees of freedom.The critical value at the 95% level is 1.729.Required:
a.What are the estimating equations for each cost driver?
b.Which cost driver is best and why?
c.Prepare the cost equation using the following high and low points:
Definitions:
Employment
Employment involves having a job or role in a company or organization, earning wages or a salary in exchange for work.
Imperfectly Competitive
Refers to market structures that do not meet the conditions of perfect competition, including monopolistic competition, oligopoly, and monopoly.
Marginal Products
This term refers to the extra output gained by adding one more unit of a specific input, keeping other inputs constant, in the production process.
Product Market
The marketplace where final goods or services are offered for purchase by consumers, businesses, and the public sector.
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