Exam 14: Least Squares Regression Computations

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(Appendix 2A)The management of Sambrano Corporation would like to better understand the behavior of the company's warranty costs.Those costs are listed below for a number of recent months: (Appendix 2A)The management of Sambrano Corporation would like to better understand the behavior of the company's warranty costs.Those costs are listed below for a number of recent months:   Management believes that warranty cost is a mixed cost that depends on the number of product returns. Required: Estimate the variable cost per product return and the fixed cost per month using the least-squares regression method. Management believes that warranty cost is a mixed cost that depends on the number of product returns. Required: Estimate the variable cost per product return and the fixed cost per month using the least-squares regression method.

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