What is the constant component of the consultant group’s overhead?

The managing director of a consulting group has the following monthly data on total overhead costs and professional labor hours to bill to clients:2 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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