Required information George Caloz & Frères, located in Grenchen, Switzerland, ma

Question

Required information George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: WeekUnits Total Etching Cost $ 18 $ 17 $ 25 s 20 $ 24 s 16 $120 30 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. 2a. Using the results of the regression analysis provided in the separate handout on Sakai, estimate the variable etching cost per unit and the total fixed etching cost per week. 2b. Express these estimates in the form Y = a + bX. Complete this question by entering your answers in the tabs below.

Explanation / Answer

S= SUM

b = variable cost per unit = [ n * S(XY) - S(X) * S(Y) ] / [ n*S(X2) - (SX)2]

= [ 6*643 - 30*120] / [ 6*178 - (30)2 ] = 258 / 168 = 1.54..............Final answer

a = Fixed cost = [S(Y) - b S(X) ] / n = [ 120 - 1.54*30 ] / 6 = 12.32.........final answer

(2B) express as an equation

Y = 12.32 + 1.54 X...................final answer

X     Y      XY       X2 4 18 72 16 3 17 51 9 8 25 200 64 6 20 120 36 7 24 168 49 2 16 32 4 S(X) = 30 S(Y) = 120 S(XY) = 643 S(X2) = 178

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