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Month Miles Fuel cost Operating Costs Feb 264,000 $2.58 /gal $224,400.00 March 980,100 $2.10 /gal $641,700.00 April 678,000 $2.07 /gal $470,729.03 May 713,200 $2.60 /gal
Month Miles Fuel cost Operating Costs Feb 264,000 $2.58 /gal $224,400.00 March 980,100 $2.10 /gal $641,700.00 April 678,000 $2.07 /gal $470,729.03 May 713,200 $2.60 /gal $579,915.15 June 1,020,380 $1.90 /gal $586,540.17 July 1,109,850 $1.89 /gal $620,763.36 (a) Develop a cost-estimating equation for total monthly operating costs using March and April data points. Please round the fixed cost to the nearest dollar, and the unit variable cost to the nearest cent. Y = X Fixed cost Unit variable cost (b) Develop a cost-estimating equation for total monthly operating costs using June and July data points. Please round the fixed cost to the nearest dollar, and the unit variable cost to the nearest cent. Y = X Fixed cost Unit variable cost (c) Assume that the only variable cost in operations of Choi express delivery is fuel cost. Estimate the range of fuel efficiency from the two cost equations you have estimated. Assume fuel cost of $2.00/ gal for all months, you can estimate the fuel efficiency in mpg from the mileage cost in $. Fuel efficiency in mpg = (Per gallon fuel cost in $) / (Per mileage fleet cost in $) mpg mpg (d) Monthly fixed operating cost of Choi express delivery's hub is $150,000. Re-estimate the cost equations for total monthly operating costs using March-April data, and June-July data, respectively. What would be the possible reason for the error in estimation of fixed cost using two-month data
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