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Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete
Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows: Month Number of Deliveries May 1,800 June 2,010 Delivery Cost $63,450 67,120 66,990 68,020 73,400 July August 2,175 2,200 September October 2,550 2,630 72,850 November 2,800 75,450 73,300 December 2,725 Assume that this information was used to construct the following formula for monthly delivery cost. Total Delivery Cost = $41,850 + ($12.00 ~ Number of Deliveries) Required: Assume that 3,000 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. 2. Calculate total fixed delivery cost for the year. 3. Calculate total delivery cost for the year
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