Using Regression to Calculate the Variable Rate, Calculate Fixed Cost, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Hungry Hannah’s above. Coefficients shown by a regression program for Hungry Hannah’s data are:

Intercept 36,588 X Variable 3.35 Hungry Hannah’s is a small start-up company that delivers food and beverages to customers in business and residential locations via a fleet of autonomous motorized devices, including self-driving cars and drones. Data for the past 8 months were collected as follows:

Required:
Use the results of regression to make the following calculations:
1. Calculate the variable rate per delivery and the total fixed delivery cost.
2. Construct the cost formula for total delivery cost.
3. Calculate the budgeted cost for next month, assuming that 9,000 deliveries are budgeted.

Month Delivery Cost Number of Deliveries May June $53,450 5,400 57,120 6,090 July 56,990 6,875 August 58,020 5,800 September 63,400 7,340 October 62,850 8,100 November 65,450 8,525 December 63,300 7,990