Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Grawburg Inc. maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent
Grawburg 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 | ||
April | 4,830 | $ | 52,363 |
May | 4,799 | $ | 52,123 |
June | 4,840 | $ | 52,444 |
July | 4,834 | $ | 52,375 |
August | 4,800 | $ | 52,119 |
September | 4,814 | $ | 52,225 |
October | 4,860 | $ | 52,592 |
November | 4,847 | $ | 52,501 |
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.)
|
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