required:

a) analyze the data and your results in the graph below; identify intercept and number of deliveries

b) determine the amount of deliveries needed to earn operating profits of $10,400

Your company provides a variety of delivery services. Management wants to know the volume of a particular delivery that would generate $10,400 per month in operating profits before taxes. The company charges $20 per delivery. The controller's office has estimated overhead costs at $9,000 per month for fixed costs and $12 per delivery for variable costs. You believe that the company should use regression analysis. Your analysis shows the results to be: Monthly overhead $24,929 $10.66 per delivery Your estimate was based on the following data. Month Overhead Costs Number of Deliveries 1 $142,930 11,630 2 151,820 12,380 192,450 15,860 4 141,060 11,450 5 203,890 12,980 180,390 14,930 159,710 183,700 7 12,710 15,260 194,280 150,140 15,650 12,170 10 154,140 11 12,830 12 185,080 183,220 15,500 14,780 13 The company controller is somewhat surprised that the cost estimates are so different. You have been asked to recheck your work and see if you can figure out the difference between your results and the controller's results