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:

Assume that this information was used to construct the following formula for monthly delivery cost. Total Delivery Cost = $32,714 + ($3.84 × Number of Deliveries)

Required:

Assume that 9,000 deliveries are budgeted for the coming year. Use the total delivery cost formula to make the following calculations:
1. Calculate total variable delivery cost for the coming year.
2. Calculate total fixed delivery cost for the year.
3. Calculate total delivery cost for the year.

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