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 6,304 $ 68,344 March 6,273 $ 68,132 April 6,314 $ 68,415 May 6,312 $ 68,389 June 6,275 $ 68,135 July 6,286 $ 68,194 August 6,331 $ 68,510 September 6,321 $ 68,466 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: 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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