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An expert is analyzing the cost behavior patterns of the defendant in an antitrust dispute....

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Accounting

An expert is analyzing the cost behavior patterns of the defendant in an antitrust dispute. The expert plans to use the information to prepare a damage estimate. The expert analyzed 30 months of cost and sale data for the Downtown Department Store. The results of regression-correlation analyses on the stores six cost categories regressed against sales dollars are as follows:
\table[[Account,a value,b value,r squared],[Cost of goods sold,$45,000,.46,.88],[Store salaries,$65,000,.055,.72],[Store utilities,$26,000,.015,.34],[Store maintenance,$14,000,.08,.035],[Advertising,$26,000,.01,.001],[Corporate overhead,$75,000,.025,.045]]a. Use the cost behavior data presented above to make a point estimate of expected costs and net income for the month of July (assuming sales of $980,000).
b. How would you describe (categorize) each of the costs?
c. How strong do you feel about estimations you made in part a?
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