Reference no: EM13579291

The managing director of a consulting group has the following monthly data on total overhead costs and professional labor hours to bill to clients:

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?