Graphing costs and interpreting regression output (adapted from CMA exam). Management of T omasa's Tacos wants to estimate overhead costs accurately to plan the company's operations and its financial needs. A trade association publication reports that certain overhead costs tend to vary with tacos made. Management gathered monthly data on tacos and overhead costs for the past two years for five taco restaurants. No major changes in operations were made over this time period. The data follow:

An analyst entered these data into a computer regression program and obtained the following output:

a. Prepare a graph showing the overhead costs plotted against tacos.
I). Use the results of the regression analysis to prepare the cost estimation equation and to prepare a cost estimate for 22,500 tacos for one month.

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Month No. Number of Tacos Overhead Costs 123456789 20.000 $42,000 25.000 49,500 22.000 44.750 23.000 45,000 20.000 40.750 19.000 37,750 14.000 35.250 10.000 32.250 12.000 34,500 10 17.000 37,500 11 16,000 35,750 12 19,000 39,000 13 21.000 43.000 14 24,000 46.500 15 23,000 46,500 16 22,000 43.500 17 20,000 40,000 18 18,000 38.250 19 12,000 33,750 20 13.000 35.500 21 15,000 36,750 22 17,000 36,250 23 15,000 35.500 24 18.000 37,500