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Avant Equipment Australia is a family business manufacturing replacement rotary sweeper brooms for the large sweeper trucks that clear leaves and rubbish from the city

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Avant Equipment Australia is a family business manufacturing replacement rotary sweeper brooms for the large sweeper trucks that clear leaves and rubbish from the city streets. The business is, to some degree, seasonal, with the largest demand during and just preceding the autumn and winter months. Since there are so many different kinds of sweeper brooms used by its customers, Avant Equipment makes all of its brooms to order. The company has been analysting its overhead accounts to determine fixed and variable components for planning purposes. Below are data for the company's janitorial costs over the last two years. Janitorial Janitorial Number of units Year Month costs work days produced 2018 January 3,840 21 1,150 February $ 3,648 20 1,090 March $ 4.128 21 1,220 April 3,456 19 950 May $ 4,320 21 1,250 June $ 4.032 22 1,190 July $ 2,784 17 770 August $ 2.688 16 710 September $ 3.840 21 1,080 October $ 3,359 20 990 November $ 2.584 16 710 December $ 2.965 17 680 2019 January $ 3.764 20 1,100 February 3,641 20 1,025 March 3,899 21 1,220 April $ 4.226 23 1,310 May 4,695 23 1,390 June 4,116 21 1,060 July $ 3,112 17 850 August 3,287 19 790 September 3,956 19 990 October 3.265 18 840 November 2.897 17 770 December 2.666 16 750 2020 January 17 1,010 February 16 950 March 20 1,210 April 14 1,350 May 21 1,280 June 22 1,120 QUESTION TWO (continued) The number of janitorial work days varies from month to month due to the number of weekdays, holidays, days of vacation and sick leave taken in the month. The number of units produced in a month varies depending on demand and the number of workdays in a month. Avant Equipment is in the process of budgeting monthly janitorial costs for 2020. The assumption is that in some way janitorial costs is related to either janitorial work days or number of units produced. REQUIRED: A. Develop a regression that Avant Equipment should use (ie y = a + bx) and explain why it is the appropriate regression to use, using the appropriate statistical tools. B. Using the regression you developed in (A), predict the janitorial cost for the 6 months of 2020 (round your answer to whole numbers)

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