Assignment
Use the following information to answer questions 13 & 2:
Diamonds on the Soles of Her Shoes LLC is conducting a statistical analysis of their total costs to manufacture shoes this year. Their cost accountant estimated costs in Excel using a regression model and the results are seen below:
Excel Regression Output: Diamonds on The Soles of Her Shoes
|
Regression Statistics
|
|
Multiple R
|
0.9165
|
|
R Square
|
0.9144
|
|
Adjusted R Square
|
0.9141
|
|
Standard Error
|
5,163.668
|
|
Observations
|
34
|
|
Total Cost
|
Coot
|
Std Error
|
t Stat
|
P-Values
|
Lower 95%
|
Upper 95%
|
|
Intercept
|
1,200,000
|
21,576,000
|
3.720
|
0.000
|
1,044,000
|
1,512,000
|
|
Production supervisor wages
|
7.68
|
138.09
|
0.056
|
0.253
|
6.68
|
9.68
|
|
Assembly line worker wages
|
28.10
|
505.24
|
1.724
|
0.086
|
24.45
|
35.41
|
|
Diamonds
|
8,675.05
|
155,977.40
|
25.674
|
0.000
|
7,547.29
|
10,930.56
|
|
Glue
|
0.05
|
0.90
|
1.275
|
0.110
|
0.04
|
0.06
|
|
Shoelaces
|
1.76
|
31.64
|
1.097
|
0.675
|
1.53
|
2.22
|
1. For the period above, Diamonds on The Soles of Her Shoes LLC sponsored a $200,000 advertising campaign, spent $700 on promotional items, and spent $6,000 to sponsor the local softball team. What was the CEO's salary for the year?
a. $1,000,000
b. $ 993,300
c. $ 994,000
d. $1,200,000
2. The total per unit cost of statistically significant prime costs are:
a. $8,703.15
b. $8,704.91
c. $8,712.59
d. $8,765.05.