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Your company provides a variety of delivery services. Management wants to know the volume of a particular delivery that would generate $10,900 per month in
Your company provides a variety of delivery services. Management wants to know the volume of a particular delivery that would generate $10,900 per month in operating profits before taxes. The company charges $20 per delivery. The controller's office has estimated overhead costs at $9,000 per month for fixed costs and $12 per delivery for variable costs. You believe that the company should use regression analysis. Your analysis shows the results to be: Monthly overhead = $21,962 + $10.69 per delivery Your estimate was based on the following data: Month 1 2 3 4 5 6 7 8 9 10 11 12 13 Overhead Costs $142,650 151,960 192,580 141,020 204,390 180,810 159,720 183,860 194,250 150,170 154,160 184,970 183,260 Number of Deliveries 11,880 12,630 16,110 11,700 13,230 15,180 12,960 15,510 15,900 12,420 13,080 15,750 15,030 The company controller is somewhat surprised that the cost estimates are so different. You have been asked to recheck your work and see if you can figure out the difference between your results and the controller's results. Perform a regression analysis in Excel to determine the regression coefficients for the data. (Round your final answers to 2 decimal places.) Coefficients Intercept Number of deliveries b. Change the question to "Determine the amount of deliveries needed to earn operating profits of $10,900. (Round your intermediate calculations 2 decimal places. Roundup "unit" answer to the nearest whole number.) The no. of units company needs approximately to earn operating profits of $10,900
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