Andrews Ceramics produces specialty ceramic products for multiple uses. The company is evaluating a proposal from a start-up company that is manufacturing micro generators. The start-up wishes to purchase a quantity of your Type D48 ceramic spools. You believe that micro generators could be a growth market in the future. Being an early supporter of the start-up business could allow for substantial future business for your company. Using regression analysis, determine the cost-estimating equation to manufacture Type D48 ceramic spools. Month Spools Produced Manufacturing Costs January 7,920 $12,416 February 10,571 $11,400 March 7,560 $8,526 April 10,875 $12,420 May 13,695 $17,221 June 12,150 $15,552 July 6,448 $12,760 August 9,801 $15,077 September 13,365 $15,675 October 12,672 $18,018 November 5,360 $10,032 December 8,276 $12,974 What is the lowest price that your company could accept without making the company worse off?

Andrews Ceramics produces specialty ceramic products for multiple uses. The company is evaluating a proposal from a start-up company that is manufacturing micro generators. The start-up wishes to purchase a quantity of your Type D48 ceramic spools. You believe that micro generators could be a growth market in the future. Being an early supporter of the start-up business could allow for substantial future business for your company. Using regression analysis, determine the cost-estimating equation to manufacture Type D48 ceramic spools. Month Spools Produced Manufacturing Costs January 7,920 $12,416 February 10,571 $11,400 March 7,560 $8,526 April 10,875 $12,420 May 13,695 $17,221 June 12,150 $15,552 July 6,448 $12,760 August 9,801 $15,077 September 13,365 $15,675 October 12,672 $18,018 November 5,360 $10,032 December 8,276 $12,974 What is the lowest price that your company could accept without making the company worse off?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 2P: Southland Corporation’s decision to produce a new line of recreational products resulted in the need...

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