(Least squares) Gulf Coast Breezes provides charter cruises into the Gulf of Mexico from a base in south Texas. Emily Lantz, the owner, wants to understand how her labor costs change per month. She recognizes that the cost is neither strictly fixed nor strictly variable. Thus, she has gathered the following information and has identified two potential predictive bases, num¬ ber of charters and gross receipts:

Using the least squares method, develop a labor cost formula using

a. number of charters

b. gross receiptsLO1.

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Month Labor Costs January February $16,000 18,400 March 24,000 April 28,400 May 37,000 June 56,000 July 68,000 100 August 60,000 September 48,000 +248 Number of Charters 10 14 Gross Receipts $ 12,000 18,000 22 26,000 28 36,000 40 60,000 62 82,000 120,000 90 100,000 80 96,000