The managing director of a consulting group has the following to bill to clients: Total Billable $340,000
Question:
Total
Billable
$340,000
3,000
$400,000
4,000
$435,000
5,000
$477,000
6,000
$529,000
7,000
$587,000
8,000
Develop a regression model to identify the fixed overhead costs to the consulting group.
a. What is the constant component of the consultant group’s overhead?
b. If a special job requiring 1,000 billable hours that would contribute a margin of $38,000 before overhead was available, would the job be attractive?
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Related Book For
Statistics Data Analysis And Decision Modeling
ISBN: 9780132744287
5th Edition
Authors: James R. Evans
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