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Estimate the cost function for delivery

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Reference no: EM132925985

Question - The controller of the Blade Company is preparing the budget for 2021 and needs to estimate a cost function for delivery costs. Information regarding delivery costs incurred in the prior 2 months are:

Month

Miles Driven

Delivery Costs

August

6,000

$4,000

September

10,000

$5,400

Required -

1. Estimate the cost function for delivery.

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

Reference no: EM132925985

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