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:
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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