Answer Happy

Bret's Accounting & Tax Services is a small well-knownaccounting firm in Sioux City, IA which completes taxes forindividuals. Every year, firms like Bret's decide how much theywill charge to complete and file an individual tax return. Thisprice determines how many tax returns firms complete each year.Suppose you are an office manager for a firm like Bret's Accountingand Tax Services and you are trying to determine what your firmshould charge next year for tax returns. Use the following data toanswer these questions. a. Graph the data using a scatter plot.Using the "Insert Trendline" function in Excel, determine whetheryou should use linear regression or log-linear. Insert the graphbelow. Be sure to label both axes. 2a. We should use ____regression 1b. Using Excel's Regression Analysis Function, run aregression and answer the following questions about your output.2b. What is your estimated demand function? 3b. Discuss the fit andsignificance of the regression. R^2 = 4b. ____ % of the variationin Returns Completed is explained by our regression using ReturnPrice. 5b. The model is _____ statistically significant. c. Howmany returns do you expect to be completed if the firms charges $65per return? What is the elasticity at this point in the demandcurve? Are you on the elastic, inelastic, or unit elastic portionof your demand curve? Can you make a recommendation to increase ordecrease price with this information? Price = $65 Estimated ReturnsCompleted (Q) = ___ Own Price Elasticity = _____ We are on _____portion of the demand curve The recommendation is ___ price d.Suppose the firm has a cost function for individual tax returns ofTC = 5200 + 6Q. Using functions and Excel's Solver functionality,determine how much the firms should be charging for a return tomaximize profit and the corresponding total revenue, total cost,and profit. TC = 5200 + 6Q price = estimated returns completed (q)= total revenue (tr) = total cost (tc) = profit = Return Price 6074 69 84 88 83 73 79 82 89 61 90 81 66 62 85 75 78 72 67 ReturnsCompleted 972 824 921 786 742 776 853 852 772 715 937 744 791 935946 762 812 818 843 939