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The controller of the Petal Company is preparing the budget for 2018 and needs to estimate a cost function for delivery costs. Information regarding
The controller of the Petal Company is preparing the budget for 2018 and needs to estimate a cost function for delivery costs. Information regarding delivery costs incurred in the prior two months are: (Click the icon to view the information.) Requirements 1. Estimate the cost function for delivery. 2. Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain. Requirement 1. Estimate the cost function for delivery. Delivery costs = Delivery costs = Constant + ( Slope coefficient Miles driven +( Cost per mile Data table Month Miles Driven Delivery Costs August 3,000 3,700 September 8,000 5,400 Print Done
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