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 $360,000 All variable

Supervision $220,000 $160,000 Fixed

Truck Expense $1,185,000 $180,000 Fixed

Building Leases $840,000 $540,000 Fixed

Utilities $210,000 $115,000 Fixed

Warehouse Labor $870,000 $145,000 Fixed

Equipment Leases $755,000 $600,000 Fixed

Data Processing Equipment $980,000 All Fixed

Other $850,000 $400,000 Fixed

Total $6,270,000

Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business.

Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year:

Month Cases Price Index Operating Costs

1 350,000 117 $5,739,139

2 367,000 119 $5,846,638

3 363,000 120 $5,889,905

4 385,000 124 $5,967,617

5 379,000 126 $5,979,135

6 400,000 127 $6,083,364

7 372,000 130 $5,958,495

8 417,000 135 $6,173,868

9 403,000 135 $6,166,130

10 426,000 134 $6,226,625

11 422,000 138 $6,248,799

12 437,000 141 $6,402,255

Compute an estimate 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. (Round variable costs to five decimal places. Round your other intermediate calculations and final answer to nearest whole dollar value.)

Compute an estimate of operating costs assuming that 450,000 cases will be shipped next month by using the results of a multiple regression of operating costs on cases shipped and the price level. Assume a price level of 141 for next month. (Round variable costs to five decimal places. Round your other intermediate calculations and final answer to nearest whole dollar value.)