Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows.

Account	Operating Cost			Behavior
Supplies	$	562,000		All variable
Supervision		202,000		$	145,000	Fixed
Truck expense		1,260,000		$	209,000	Fixed
Building leases		874,000		$	550,000	Fixed
Utilities		205,000		$	120,000	Fixed
Warehouse labor		872,000		$	131,000	Fixed
Equipment leases		753,000		$	599,000	Fixed
Data processing equipment		933,000		All fixed
Other		854,000		$	408,000	Fixed
Total	$	6,515,000

Month	Cases	Price Index	Operating Costs
1	322,000	112	$5,699,145
2	353,000	111	5,806,644
3	323,000	111	5,849,911
4	376,000	113	5,927,623
5	364,000	125	5,939,141
6	372,000	129	6,043,370
7	380,000	124	5,918,501
8	428,000	128	6,133,874
9	378,000	125	6,126,136
10	420,000	130	6,186,631
11	420,000	139	6,208,805
12	429,000	141	6,362,261

These data are considered representative for both past and future operations in Brazil.

Intercept
Cases

c-1. Using Excel, calculate the simple regression of operating costs on cases shipped and enter the regression coefficients.

c-2. Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped.

Estimate of operating cost