A local restaurant, Fred’s Fish Fry, is estimating nonfood kitchen costs (labor, supervision, utilities, etc.) based on food cost. Data were gathered for the past 24 months and analyzed using a spreadsheet program. The following output was generated:
Equation
Intercept . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,000
Coefficient on food cost . . . . . . . . . . . . . . . . 225%
Statistical data
Correlation coefficient . . . . . . . . . . . . . . . . . 0.483
R2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.233
The company is planning to operate at a level of $15,000 of food costs per month for the coming year.

Required
a. Use the regression output to write the nonfood cost equation.
b. Based on the cost equation, compute the estimated nonfood kitchen costs (labor, supervision utilities, etc.) per month for the coming year.
c. Fred has asked you for advice on whether he should rely on the estimate. What will you say?