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Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active seniors who are retiring and looking forward

Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active seniors who are retiring and looking forward to a new career. The service will sell for a flat $969 per client and will consist of a standardized offering. The service will consist of a total of 9 hours with a counseling specialist and a battery of tests to assess interests and aptitudes. Counseling specialists, who are contract employees, are paid $32 per hour. The testing is estimated to cost $129 per client.
Administrative costs for the new service have not been estimated, but the company has collected information on counseling hours and administrative costs for other services over the past 15 months. The following is a summary of a simple regression of administrative costs on counseling hours:
\table[[Simple Regression Analysis Results],[Dependent variable-Administrative costs (monthly),],[Independent variable-Counseling hours (monthly),],[Computed values,],[Intercept,$75,900
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