The controller for Dohini Manufacturing Company felt that the number of purchase orders alone did not explain the monthly purchasing cost. He knew that nonstandard orders $($for example, one requiring an overseas supplier$)$ took more time and effort. He collected data on the number of nonstandard orders for the past $12$ months and added that information to the data on purchasing cost and total number of purchase orders.

Month Purchasing Cost Number of Purchase Orders Number of Nonstandard Orders

January $$18,86037053$

February $18,06533035$

March $19,25037061$

April $18,05041014$

May $19,34540073$

June $19,50045055$

July $19,67046030$

August $20,94056080$

September $19,43044051$

October $20,02050050$

November $18,80047012$

December $19,34048027$

Multiple regression was run on the above data; the coefficients shown by the regression program are:

Intercept $14,530($rounded to the nearest dollar$)$

X variable $18\mathrm{.}78($rounded to the nearest cent$)$

X variable $220\mathrm{.}37($rounded to the nearest cent$)$

Required:

$1.$ Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate.

$fill in the blank $1$

$+($$fill in the blank $2$

$\backslash$times Purchase orders$)+($$fill in the blank $3$

$\backslash$times Nonstandard orders$)$

$2.$ If Dohini Manufacturing Company estimates that next month will have $430$ total purchase orders and $45$ nonstandard orders, what is the total estimated purchasing cost for that month? $($Round your answer to the nearest dollar.$)$

$fill in the blank $4$

$3.$ What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects $5,350$ purchase orders and $600$ nonstandard orders?

What will estimated total purchasing cost be$?($Round your answer to the nearest dollar.$)$

$fill in the blank $5$

What is the total fixed purchasing cost?

$fill in the blank $6$

Why doesn't it equal the fixed cost calculated in Requirement $2$ above?