Pearson Products Believes One of Its Costs Is a Mixed

Essay

Pearson Products believes one of its costs is a mixed cost and has run a regression analysis which shows the following:
SUNLMARY OUTPUT
$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.963711945 \\\text { R Square } & 0.928740713 \\\text { Adjusted R Square } & 0.916864165 \\\text { Standard Error } & 946.0983069 \\\text { Observations } & 8 \\\hline\end{array}$

ANOVA
$\begin{array}{llrrrr}\hline&\text { df } &\text { S S}&\text { M S }&\text { F }& \text { Significance F}\\\text { Regression } & 1 & 69996575.46 & 69996575.46 & 78.19955153 & 0.000116235 \\\text { Residual } & 6 & 5370612.038 & 895102.0063 & & \\\text { Total } & 7 & 75367187.5 & & & \\\hline\end{array}$

$\begin{array}{lrrrr}\hline&&\text { Coefficients } &\text { Standard Eiror } &\text { t Stat } & \text {P -vahue }\\\hline\text { Intercept } & 11568.56000 & 1352.390000 & 8.554149469 & 0.000140059 \\\text { X Variable 1 } & 1.9800000 & 0.223900000 & 8.843051031 & 0.000116235 \\\hline\end{array}$

Required:
A. Write the equation to predict estimated total mixed costs.
B. If 1000 units are produced, what will be total mixed costs?
C. What does the 'R Square' number tell Pearson? Interpret the 'R Square' data for Pearson.