Yates Corp Required:
(A

question 81

Essay

Yates Corp.wants to develop a cost equation for its administrative costs.The controller believes the appropriate cost driver is units produced.Last year's data are presented below:
$$\begin{array} { | l | r | r | } \hline \text { Month } & \begin{array} { r } \text { Units } \\\text { produced }\end{array} & \begin{array} { r } \text { Aoministrative } \\\text { Costs }\end{array} \\\hline \text { January } & 32,500 & \$ 24,288 \\\hline \text { February } & 37,700 & 27,720 \\\hline \text { March } & 24,700 & 17,820 \\\hline \text { April } & 40,300 & 30,360 \\\hline \text { May } & 49,400 & 37,290 \\\hline \text { June } & 42,900 & 29,040 \\\hline \text { July } & 53,300 & 32,670 \\\hline \text { August } & 45,500 & 30,030 \\\hline \text { September } & 26,000 & 20,460 \\\hline \text { October } & 48,100 & 34,320 \\\hline \text { November } & 61,100 & 40,920 \\\hline \text { December } & 54,600 & 36,630 \\\hline \text { Total } & 516,100 & \$ 361,548 \\\hline \text { Average } & 43,008 & \$ 30,129 \\\hline\end{array}$$

Required:
(a. )What is the equation for administrative costs using the high-low method?
(b. )Prepare an estimate of administrative costs for a month when 30,000 units are produced.

Understand the effects of purchasing domestic versus foreign goods on GDP.

Recognize the distinction between real GDP as an economic well-being measure versus nominal GDP.

Realize the role of government transfers and their exclusion in GDP calculations.

Analyze the impact of changes in GDP on a country's economic health and development.

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Definitions:

Pseudocoelom

A fluid-filled body cavity lying between the intestines and outer body wall that is only partially lined with mesoderm in some invertebrates.

Mesoderm

The middle germ layer of the early embryo; gives rise to connective tissue, muscle, bone, blood vessels, kidneys, and many other structures. Compare with ectoderm and endoderm.

Coelom

refers to the body cavity in animals that is lined by mesoderm tissue, separating the digestive tract from the outer body wall.

Deuterostomes

A superphylum of animals characterized by the blastopore developing into the anus during early embryo development.