Question
Galarneau Inc. maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent
Galarneau Inc. maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: |
Calls Taken | Call Center Cost | ||||
February | 7,320 | $ | 79,358 | ||
March | 7,289 | $ | 79,167 | ||
April | 7,330 | $ | 79,424 | ||
May | 7,327 | $ | 79,386 | ||
June | 7,296 | $ | 79,221 | ||
July | 7,309 | $ | 79,292 | ||
August | 7,350 | $ | 79,537 | ||
September | 7,335 | $ | 79,449 | ||
Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. |
Required: |
Use Microsoft Excel to run a least-squares regression analysis on the above data, and estimate the variable cost per call and 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.) |
Variable cost | $ | per call |
Fixed cost | $ | per month |
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