Refer to the information for Speedy Pete's on the previous page. Coefficients shown by a regression program for Speedy Pete's data are:

Intercept.....................43,293

X Variable.....................11.34

Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows:

Month Delivery Cost Number of Deliveries

May.....................$63,450.............................1,800

June.......................67,120.............................2,010

July.......................66,990.............................2,175

August...................68,020.............................2,200

September...............73,400.............................2,550

October..................72,850.............................2,630

November...............75,450.............................2,800

December...............73,300.............................2,725

Required:

Use the results of regression to make the following calculations:

1. Calculate the fixed cost of deliveries and the variable rate per delivery.

2. Construct the cost formula for total delivery cost.

3. Calculate the budgeted cost for next month, assuming that 3,000 deliveries are budgeted.