McGarvey Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders. Number of Purchase Orders Month January February March April May June July August September October November December Purchasing Cost Intercept X variable 1 $19,250 18,050 18,200 18,050 19,345 19,500 19,670 20,940 19,430 20,020 18,800 19,340 370 330 320 410 400 450 460 560 440 600 470 480 The controller for McGarvey Manufacturing ran regression on the data, and the coefficients shown by the regression program are: 15,676 (rounded to the nearest dollar) 8.03 (rounded to the nearest cent)

The controller for McGarvey Manufacturing ran regression on the data, and the coefficients shown by the regression program are: intercept 15,676 (rounded to the nearest dollar) x variable 1 8.03 (rounded to the nearest cent) 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. Total purchasing cost $+$ Purchase orders ) 2. If MCGarvey Manufacturing Company estimates that next month will have 480 purchase orders, what is the total estimated purchasing cost that month? (Round your answer to the nearest dollar.) 3. What if McGarvey Manufacturing wants to estimate purchasing cost for the coming year and expects 6,030 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesn't it equal the fixed cost calculated in Reguirement 1 above