Question
Hungry Hannah's is a small start-up company that delivers food and beverages to customers in business and residential locations via a fleet of autonomous motorized
Hungry Hannah's is a small start-up company that delivers food and beverages to customers in business and residential locations via a fleet of autonomous motorized devices, including self-driving cars and drones. Data for the past 8 months were collected as follows:
Month | Delivery Cost | Number of Deliveries |
---|---|---|
May | $53,450 | 5,400 |
June | 57,120 | 6,090 |
July | 56,990 | 6,875 |
August | 58,020 | 5,800 |
September | 63,400 | 7,340 |
October | 62,850 | 8,100 |
November | 65,450 | 8,525 |
December | 63,300 | 7,990 |
Assume that this information was used to construct the following formula for monthly delivery cost.
Total Delivery Cost = $32,714 + ($3.84 Number of Deliveries) |
Required:
Assume that 9,000 deliveries are budgeted each month for the coming year. Use the total delivery cost formula to make the following calculations:
1. Calculate total variable delivery cost for the coming year. fill in the blank 1 of 3$
2. Calculate total fixed delivery cost for the coming year. fill in the blank 2 of 3$
3. Calculate total delivery cost for the coming year. fill in the blank 3 of 3$
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