QUESTION 3 21 MARKS Beetroots (Pty) Ltd is a company that buys fresh veggies in bulk,...

QUESTION 3 21 MARKS Beetroots (Pty) Ltd is a company that buys fresh veggies in bulk, and sells it direct to the public after packaging it in smaller quantities. The following cost data is available for six months: Month Kg Veggies Total cost January 200kg R3,800 February 500kg R8,600 March 900kg R14,300 April 350kg R5,950 May 780kg R12,800 June 800kg R13,200 The Financial Manager is of the opinion that the total cost for the month is related to the quantity of veggies that is packaged (measured in kilograms). REQUIRED: MARKS 3.1 Compile a cost formula (cost function) by making use of the High-Lowmethod. 5 3.2 Compile a cost formula (cost function) by making use of the Least Squares-method (Simple Regression Analysis). Show all calculations. 8 3.3 Explain why there is a difference between the cost formula according to the High-Low-method and the cost formula according to the Least Squares-method, and advise the best method to use. 4 3.4 Calculate the budgeted cost for July and August according to both cost formulas if the expected quantity of veggies that will be packaged is 950kg and 1,020kg respectively. 4

Expert Solution

ekkarill92 answered 7 months ago

Beetroots (Pty) Ltd is a company that buys fresh veggies in bulk and sell it direct...

Beetroots (Pty) Ltd is a company that buys fresh veggies in bulk and sell it direct to the public after packaging it in smaller quantities. The following cost data is available for six months: Month Kg Veggies Total cost January 200 kg $3 800 February 500 kg $8 600 March 900 kg $14 300 April 350 kg $5 950 May 780 kg $12 800 June 800 kg $13 200 The financial manager is of the opinion that the total cost...

Question 3 (7 marks) Everyday Supplies Pty Ltd is a single-store retailer that sells a variety...

Question 3 Everyday Supplies Pty Ltd is a single-store retailer that sells a variety of tools, garden supplies, timber, small appliances, and electrical fixtures to the public, although about half of Everyday Supplies’ sales are to construction contractors on account. Retail customers pay for merchandise by cash or credit card at cash registers when merchandise is purchased. A contractor may purchase merchandise on account, if approved by the credit manager based only on the manager’s familiarity with the contractor’s reputation....

QUESTION 3 [20 MARKS] PCL (Pty) Ltd gave you the following expenses that were budgeted to...

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