Alice Coughlin, owner of Tulip Time, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers. Coughlin wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. Assume that Alice's Tulip Time does a regression analysis on the next year's data using Microsoft Excel. The output generated by Excel is as follows: (Click the icon to view the regression analysis.) Requirements Regression analysis 1. Determine the firm's cost equation (use the output from the Excel regression) 2. Determine the R-square (use the output from the Excel regression). What does Tulip Time's R-square indicate? 3. Predict van operating costs at a volume of 18,000 km. Regression Statistics Multiple R 0.85 R Square 0.72 Adjusted R Square 0.67 Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Round your answer Standard Error 184.41 Observations y = $ x + $ ANOVA df SS MS F Significance F Regression 439056.33 439056.33 12.91 0.0157 Residual 170029.38 34005.88 Total 6 609085.71 Standard Upper Coefficients Error t Stat P-value Lower 95% Upper 95% Lower 95.0% 95.0% Intercept 757.43 1285.98 0.59 0.58 -2548.27 4063.14 -2548.27 4063.14 X Variable 1 0.27 0.08 3.59 0.02 0.08 0.47 0.08 0.47Coughlin Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow. (Click the icon to view the data.) Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Coughlin Company uses 1,250 machine hours in a month, what will its total costs be? - . . Requirement 1. What is the variable utilities cost per machine hour? Determine the formula that is used to calculate the variable cost (slope). Choose the correct answer below. O A. Change in volume + Change in cost = Variable cost (slope) O B. Total operating cost - Total variable cost = Variable cost (slope) O C. Highest cost - Highest volume = Variable cost (slope) O D. Lowest cost + Lowest volume = Variable cost (slope) E. Change in cost = Change in volume = Variable cost (slope) Using the high-low method, the variable utilities cost per machine hour is $ . (Round the variable cost to the nearest cent.)