P3.36 LO 3.12 (appendix) Multiple regression analysis: service firm CopyFast operates a chain of photocopy centres near several major universities. The firm's accountant is accumulating data to be used in preparing its annual budget for the coming year. The cost behaviour pattern of the firm's equipment maintenance costs must be determined. Data regarding number of photocopies, maintenance hours and costs for last year are as follows: Month January Number of photocopies Hours of maintenance service Maintenance costs 80000 525 $ 4710 February 68000 505 4310 March 69000 310 2990 April 64000 495 4 200 May 90000 315 3000 June 85000 485 4215 July 55000 315 2950 August 85000 405 3680 September 62000 475 4100 October 82000 345 3250 November 60000 350 3260 December 70000 335 3015 Total 870000 4860 43 680 Average 72 500 405 3640 Required 1. Use Excel and multiple regression analysis to estimate the behaviour of CopyFast's maintenance costs. 2. Calculate R and interpret this statistic. 3. Calculate the total variable cost and the fixed cost per maintenance hour at 500 hours of maintenance and 85000 photocopies. Explain the problems that might occur when using fixed cost per hour in decisions.