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

The cost function in requirement $1$ is an estimate of how costs behave $$ the relevant range, not at cost levels $q,$ the relevant range. If there are no months with zero miles driven represented in the delivery cost account in the general ledger, data in that account $$ be used to estimate the fixed costs at the zer$$ miles driven level. The constant component of the cost function provides the best available starting point for a straight line that approximates how a cost behaves $$