The Following Regression Analysis Output Is for Watson Company's Cost $$\begin{array} { l r } &\text { Coefficients } \\ \text { \( Y \) Intercept } & 258,323 \\\text { \( X \) Variable } & 0.04\end{array}$$

question 20

Essay

The following regression analysis output is for Watson Company's cost of paying sales people salary plus commission as a percent of sales on a monthly basis:
$$\begin{array} { l r } &\text { Coefficients } \\ \text { \( Y \) Intercept } & 258,323 \\\text { \( X \) Variable } & 0.04\end{array}$$

a.Use the regression output above to develop the cost equation Y = f + vX.
b.What would be Watson's estimated costs if it had sales of $2,000,000 next month?
c.What concerns would you have if Watson's CEO wanted you to compute estimated costs based on $8,000,000 sales for next month,when sales amounts have never exceeded $3,000,000?

---

Definitions:

Results Oriented

An approach or mindset that focuses on achieving specific outcomes or goals, often emphasizing the end result over the process used to achieve it.

Time Management

The process of organizing and planning how to divide your time between specific activities to increase effectiveness, efficiency, and productivity.

Prioritizing

The process of determining the most important tasks or goals and allocating time and resources accordingly.

Strategic Plans

Long-term goals and actions designed to achieve a company's vision and mission, enabling it to navigate towards future growth and success.