Sender, Inc. estimates parcel mailing costs using the data shown on the chart below.

 Sender, Inc. estimates parcel mailing costs using the data shown on the chart below.



What is Sender's estimated cost for mailing 12,000 parcels?

$36,000.
$45,000.
$51,000. Correct
$60,000.

 You Answered Correctly!
The following equation must be estimated: y = a + bx or Mailing cost = fixed cost + (cost per parcel X # or parcels)

A = fixed cost = $15,000 (from the picture − the Y intercept)

B = variable cost (slope) = ($75,000 - $15,000)/($20,000 - 0) = $3.00

The estimated cost for mailing 12,000 parcels is $15,000 + $3.00($12,000) = $51,000.