Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains a large call
Cubicle Solutions sells productivity software such as word processors, spreadsheets, and personal information managers. Cubicle prides itself on customer support and maintains a large call center where customers can call in with technical questions about the installation and use of Cubicle products. Monthly data on the number of support calls and call center costs for the last year have been collected and are shown as follows (all activities and costs are in thousands): Month 1 2 3 4 5 6 7 8 9 10 11 12 Support Calls 38 50 46 40 56 48 45 49 52 41 43 42 Call Center Cost $538 650 600 540 700 620 600 630 660 555 575 560 Required: a. Estimate the monthly fixed costs and the unit variable cost per support call using the high-low estimation method. (Round variable cost per unit to 2 decimal places. Enter your answer in thousands of dollars.) Overhead Costs per call Support calls b. Draw a scattergraph relating call center costs to the number of support calls. Instructions: 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. Enter the exact coordinates in the dialog box that appears to the right of the graph. 4. Click save. 5. To change coordinates already saved, click on a point already placed in the graph, and enter revised coordinates in the dialog box that opens. High-Low Method, Scattergraph Cubicle Solutions 750 Tools 700 Month 1 Month 2 650 Month 3 Month 4 Cost 600 Moring Months Month 5 Month 6 550 9 1 500 a 30 35 40 45 50 55 60 65 70 Calls
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started