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Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have
Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:
Copy Machine | |||||||
Month | Repair Expense | Copies Made | |||||
May | $9,000 | 300,000 | |||||
June | 13,000 | 550,000 | |||||
July | 22,000 | 950,000 | |||||
August | 17,000 | 750,000 | |||||
September | 10,500 | 400,000 |
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity. (Round variable component per copy to 2 decimal places, e.g. 0.15.)
Variable Component | $ | per copy | ||
Fixed Component | $ | per month |
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