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George Caloz & Frères, located in Grenchen, Switzerland,makes prestige high-end custom watches in small lots. One of thecompany’s products, a platinum diving watch, goes through anetching process. The company has observed etching costs as followsover the last six weeks:

Week	Units			Total Etching Cost
1		14			$	27
2		11			$	20
3		16			$	30
4		10			$	20
5		12			$	25
6		15			$	28
		78			$	150

For planning purposes, management would like to know the amountof variable etching cost per unit and the total fixed etching cost per week.

Required:

1.	Prepare a scattergraph plot. (Place etching costs on thevertical axis and units on the horizontal axis.)

  

Instructions:
1.	On the graph below, use the point tool (Week 1) to plotunits on the horizontal axis and total etching cost on the verticalaxis.
2.	Repeat the same process for the plotter tools (Week 2to Week 6).
3.	To enter exact coordinates, click on the point andenter the values of x and y.
4.	To remove a point from the graph, click on the pointand select delete option.

      

2(a).

Using the least-squares regression method, estimate thevariable and fixed elements of etching cost. (Round your answers to 2 decimalplaces.)

     

  

2(b).

Express the cost data in (2a) above in the form Y = a + bX.(Round your answers to 2 decimal places.)

     

         

3.	If the company processes thirteen units next week, what would bethe expected total etching cost? (Round your intermediateand final answers to 2 decimal places.)