Question: 1. Estimating a cost function. The controller of the Javier Company is preparing the budget for 2018 and needs to estimate a cost function for

1. Estimating a cost function. The controller of the Javier Company is preparing the budget for 2018 and needs to estimate a cost function for delivery costs. Information regarding delivery costs incurred in the prior two months 

are:

 

Month Miles Driven Delivery Costs

August 1200010000

September1700013000

1.Estimate the cost function for delivery.

2.Can the constant in the cost function be used as an estimate of fixed delivery cost per month? Explain.

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