Bon Voyage provides charter cruises in the eastern Caribbean. Tina Louise, the owner, wants to understand how her labor costs change per month. She recognizes that the cost is neither strictly fixed nor strictly variable. She has gathered the following information and has identified two potential predictive bases, number of charters and gross receipts:

Using the least squares method, develop a labor cost formula using
a. Number of charters
b. Grossreceipts

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Number of Charters Month Labor Costs Gross Receipts ($000) S 12 18 26 36 January February 8,000 9,200 12,000 14,200 18,500 28,000 34,000 30,000 24,000 10 April May June July August 28 40 62 100 90 82 120 100 96