Using Regression Results to Construct and Apply a Cost Formula

Dohini Manufacturing Company had the following $12$ months of data on purchasing cost and number of purchase orders.

Month Purchasing Cost Number of Purchase

Orders

January $$18,860370$

February $18,065330$

March $19,250370$

April $18,050410$

May $19,345400$

June $19,500450$

July $19,670460$

August $20,940560$

September $19,430440$

October $20,020500$

November $18,800470$

December $19,340480$

The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are:

Intercept $15,021($rounded to the nearest dollar$)$

X variable $19\mathrm{.}74($rounded to the nearest cent$)$

Required:

$1.$ Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate.

Total purchasing cost $=$ $fill in the blank $1+($$fill in the blank $2\backslash$times Purchase orders$)$

$2.$ If Dohini Manufacturing Company estimates that next month will have $430$ purchase orders, what is the total estimated purchasing cost for that month? $($Round your answer to the nearest dollar.$)$

$fill in the blank $3$

$3.$ What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects $5,340$ purchase orders? What will estimated total purchasing cost be$?($Round your answer to the nearest dollar.$)$

$fill in the blank $4$

What is the total fixed purchasing cost?

$fill in the blank $5$