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Your company provides a variety of delivery services. Management wants to know the volume of a particular deliverythat would generate $11,000 per month in operating
Your company provides a variety of delivery services. Management wants to know the volume of a particular deliverythat would generate $11,000 per month in operating prots before taxes. The company charges $22 per delivery. The controller's office has estimated overhead costs at $9,900 per month forxed costs and $12 per delivery forvariable costs. You believe that the company should use regression analysis. Your analysis shows the results to be: Monthly overhead=$26,501+$10.?0 per Your estimate was based on the following data: Month Overhead lCosts Number of Deliveries 1 $ 159530.00 '2510 2 183:990 '5060 3 142:850 '1430 4 194:430 '5450 5 151 i890 '2180 6 150:120 '19'r'0 7' 192:500 '5550 8 154:080 '2030 9 141:030 '1250 10 184300 '5300 11 903.490 '2780 12 183120 '4580 13 1801330 '4730 REQUIRED The company controller is somewhat surprised that your cost estimates are so dierent from the controller's. You have been asked to recheck your work and see ifyou can gure out the difference between your results and the controller's results
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