Question: on question chapter 5 probl 46P, there is a regression answer, but I was wondering how this was calculated with using what overhead costs and

on question chapter 5 probl 46P, there is a regression answer, but I was wondering how this was calculated with using what overhead costs and deliveries? the question states

Your company provides a variety of delivery services. Management wants to know the volume of a particular delivery that would generate $10,000 per month in operating profits before taxes. The company charges $20 per delivery.

The controllers office has estimated overhead costs at $9,000 per month for fixed costs and $12 per delivery for variable costs. You believe that the company should use regression analysis. Your analysis shows the results to be:

Monthly overhead = $26,501 + $10.70 per delivery

Your estimate was based on the following data:

Month

Overhead Costs

Number of Deliveries

1

$142,860

11,430

2

$ 151,890

12,180

3

$192,600

15,660

4

$141,030

11,250

5

$203,490

12,780

6

$180,630

14,730

7

$159,630

12,510

8

$183,990

15,060

9

$194,430

15,450

10

$150,120

11,970

11

$154,080

12,630

12

$184,800

15,300

13

$183,120

14,580

so the regression results were

Multiple R

0.9921

R Square

0.9843

Adjusted R Square

0.9827

Standard Error

2635.7

Observations

12

Coefficients

Intercept

$9776.56

Number of deliveries

$11.69

so what was calculated to get the regression results?

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