VOLUME CHEMICAL

You are involved in analyzing the relationship between the cost and the volume of production. You have collected the following inflation‐adjusted data:

Table 3.12—Volume Chemical Inflation-Adjusted Data

Production Units Costs

700 $61,750

1,450 $64,450

1,500 $66,000

1,750 $69,438

2,100 $73,410

2,150 $75,720

3,050 $79,375

  1. Estimate the cost to produce 2,000 units.
  2. Determine the coefficient of determination (r2).
  3. Determine whether to use this equation for estimating purposes. (yes/no)