1 Cost Behavior 2 Regression Analysis 3 Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Leigh wants to set the delivery fee based on the distance driven to deliver the flowers. Leigh wants to separate the fixed and variable portions of her van operating costs so that she has a better idea of how delivery distance affects these costs. She has the following data 4 from the past seven months: 5 Van Operating 67 Month Miles Driven Costs January 15,500 $ 5,390 8 February 17,400 $ 5,280 9 March 15,400 $ 4,960 10 April 16,300 $ 5,340 11 May 16,500 $ 5,450 12 June 15,200 $ 5,230 13 July 14,400 $ 4,680 14 + 15 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If 16 you copy/paste from the Instructions tab you will be marked wrong. 17 18 Requirements 19 20 21 22 22 23 1 Run a regression analysis using data for January through July. Determine the company's cost equation (use the output from the regression analysis you performed using Excel). a. Rename the regression output tab "REGRESSION" 2 Determine the R-square (use the output from the Excel regression). 3 Predict van operating costs at a volume of 16,500 miles assuming the company would use the cost equation from the Excel regression regardless of its R-square. a. Reference values calculated in previous requirements as needed