# Define response and explanatory variable. Give an illustrative example. (b) Which of the following..

COMPOUNDSCINCINNATI PLANT Forecasted Results of Operations For the Six-Month Period Ending June 30,

COMPOUNDSCINCINNATI PLANT Forecasted Results of Operations For the Six-Month Period Ending June 30, 2011 (in \$000s) Regular Heavy-Duty Total Sales \$2,000 \$ 3,000 \$ 5,000 Cost of sales (1,600) (1,900) (3,500) Gross profi t \$ 400 \$ 1,100 \$ 1,500 Selling and administrative expenses Variable \$ 400 \$700 \$ 1,100 Fixed* 240 360 600 Total selling and administrative expenses \$ (640) \$(1,060) \$ (1,700) Income (loss) before taxes \$ (240) \$ 40 \$ (200) *The fi xed selling and administrative

View complete question »                   COMPOUNDSCINCINNATI PLANT Forecasted Results of Operations For the Six-Month Period Ending June 30, 2011 (in \$000s) Regular Heavy-Duty Total Sales \$2,000 \$ 3,000 \$ 5,000 Cost of sales (1,600) (1,900) (3,500) Gross profi t \$ 400 \$ 1,100 \$ 1,500 Selling and administrative expenses Variable \$ 400 \$700 \$ 1,100 Fixed* 240 360 600 Total selling and administrative expenses \$ (640) \$(1,060) \$ (1,700) Income (loss) before taxes \$ (240) \$ 40 \$ (200) *The fi xed selling and administrative expenses are allocated between the two products on the basis of dollar sales volume on the internal reports. Chapter 10 Relevant Information for Decision Making 473 Th e sales price per case for the regular compound will be \$20 and for the heavyduty will be \$30 during the fi rst six months of 2011. Th e

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