Question
Use the Susan Lewis florist shop data for Number of Deliveries and Delivery Cost in Exercise 3-56 in your textbook on page 137 to run
Use the Susan Lewis florist shop data for Number of Deliveries and Delivery Cost in Exercise 3-56 in your textbook on page 137 to run a Regression on Excel WITH THE FOLLOWING NUMBER ADJUSTMENTS: Change the September Number of Deliveries to 350 and the September Delivery Cost to $1,530 and the December Delivery Cost of $1,700. You do NOT have to submit your Excel spreadsheet. Just use your Excel regression results and type up a Word document with your answers to these questions:
#1 How much is the fixed cost of labor per month?
#2 How much is the variable rate per delivery?
#3 What would the cost formula be to use to predict future delivery cost?
#4 Using that cost formula, calculate the budgeted cost for next month, assuming that 410 deliveries are expected.
Objective 5 Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost (depreciation on the van, wages of the driver, and fuel) for the past year. EXCEL Month January February Number of Deliveries Delivery Cost 100 $1,200 550 1.800 March 85 1,100 April 115 1,050 May 160 1,190 June 590 1,980 July 500 1,800 August 520 1,700 100 1,100 September October 200 1,275 November 260 1,400 December 450 2,200Step by Step Solution
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