Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows: Month Delivery Cost Number of Deliveries May $63,450 1,800 June 67,120 2,010 July 66,990 2,175 August 68,020 2,200 September 73,400 2,550 October 72,850 2,630 November 75,450 2,800 December 73,300 2,725 Coefficients shown by a regression program for Speedy Pete's data are: Intercept 43,293 X Variable 11.34 In your calculations, round the variable rate per delivery to the nearest cent. Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of deliveries. Calculate the variable rate per delivery. per delivery 2. Construct the cost formula for total delivery cost. Total Delivery Cost = $ +($ x x Number of Deliveries) 3. Calculate the budgeted cost for next month, assuming that 3,000 deliveries are budgeted. Feedback Check My Work Review the graph presentation of Mixed Cost Behavior. Mixed costs are represented by a line that intercepts the vertical axis. Fixed costs correspond with the y-intercept. Variable cost per unit of activity driver is given by the slope of the line