5. The managing director of a consulting group has the following monthly data on total overhead costs and professional labor hours to bill to clients:4 Total Billable

$340,000 3,000

$400,000 4,000

$435,000 5,000

$477,000 6,000

$529,000 7,000

$587,000 8,000 Develop a regression model to identify the fixed overhead costs to the consulting group.

a. What is the constant component of the consultant group’s overhead?

b. If a special job requiring 1,000 billable hours that would contribute a margin of $38,000 before overhead was available, would the job be attractive?