Question
Furlan Printing Corp., a book printer, has provided the following data: Titles Printed Press Setup Cost May 26 $ 3,180 June 27 $ 3,213 July
Furlan Printing Corp., a book printer, has provided the following data:
Titles Printed | Press Setup Cost | |||
May | 26 | $ | 3,180 | |
June | 27 | $ | 3,213 | |
July | 39 | $ | 3,698 | |
August | 21 | $ | 3,006 | |
September | 37 | $ | 3,617 | |
October | 35 | $ | 3,561 | |
November | 36 | $ | 3,563 | |
December | 32 | $ | 3,780 | |
Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.)
Required:
Estimate the variable cost per title printed and the fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.)
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