Linda joined Galway Company, a toy manufacturer, one month ago and has not learned much about cost accounting. In spite of lacking for experience in this area, her boss, Ron has urged her to start a budgeting project due to a shortage of staff in the house. Ron wants to know hoe much total delivery costs would be incurred next month with an expectation of 2,000 toys sold and delivered, and unprecedented number in Galway's history. Ron has not told Linda much information and what to do about this project but only given the following numbers related to the delivery unites and costs incurred in the pas 12 months. Linda asks you to help her complete the assigned work

Month Units Delivered Delivery Cost

1 800 $20,000

2 1,000 21,000

3 900 19,500

4 1,200 22,500

5 1,400 29,500

6 1,100 21,500

7 1,250 26,000

8 1,400 30,000

9 1,300 24,000

10 1,500 33,500

11 1,700 36,000

12 1,600 34,000

1.) Explain the work that Linda has been assigned. Then develop a step by step plan to achieve the goal.

2.) Use alternative methods to determine the expected delivery cost with 2,000 units delivered.

3.) Discuss the advantage and disadvantages of the alternative methods you use

4.) Assume that the delivery cost in month 4 is $30,000 instead of $22,500, and everything else is the same. The significantly high cost of $30,000 in month 4 was caused by an incident that is not expected to recur in the future. Linda is not sure what to do with the data of month 4. Help her to redevelop the regression model and determine the expected delivery costs with 2,00 units delivered.