This corporation transports products in the western states of the United States. The cooperation has gathered the following costs regarding the freight miles driven by the cooperations trucks as well as the cooperations operating costs.
Operating costs Freight Miles
January 942 1710
February 1008 2655
March 1218 2705
April 1380 4220
May 1484 4660
June 1548 4455
July 1568 4435
August 1972 4990
September 1190 2490
October 1302 2610
November 962 2240
December 772 1490
Assume the company charges a price per mile of $.35.
Please use excel to perform the following
Perform a regression using the regression data analysis tool. As part of your output, Provide a line fit plot. On the graph, superimpose a total revenue line.
2) Basics-
a) What is the formula for the total cost line?
b) What is the formula for the total revenue line?
c) How is the level of total Fixed cost?
d) What is the breakeven point units?
e) What is the breakeven point in dollars?
3) What is the new break even points(units) if total fixed costs increase by $1000?
4) What is the new breakeven point(Units) if the sales price is raised to .40 per mile?
5) If the sales price is raised to .40 per mile, what is the profit(loss) at 1600 Miles?