on question chapter 5 probl 46P, there is a regression answer, but I was wondering...
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on question chapter 5 probl 46P, there is a regression answer, but I was wondering how this was calculated with using what overhead costs and deliveries? the question states
Your company provides a variety of delivery services. Management wants to know the volume of a particular delivery that would generate $10,000 per month in operating profits before taxes. The company charges $20 per delivery.
The controllers 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 = $26,501 + $10.70 per delivery
Your estimate was based on the following data:
Month
Overhead Costs
Number of Deliveries
1
$142,860
11,430
2
$ 151,890
12,180
3
$192,600
15,660
4
$141,030
11,250
5
$203,490
12,780
6
$180,630
14,730
7
$159,630
12,510
8
$183,990
15,060
9
$194,430
15,450
10
$150,120
11,970
11
$154,080
12,630
12
$184,800
15,300
13
$183,120
14,580
so the regression results were
Multiple R
0.9921
R Square
0.9843
Adjusted R Square
0.9827
Standard Error
2635.7
Observations
12
Coefficients
Intercept
$9776.56
Number of deliveries
$11.69
so what was calculated to get the regression results?
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