Question
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 | 7560 | $ | 81,960 |
| May | 7529 | $ | 81,773 |
| June | 7570 | $ | 82,025 |
| July | 7568 | $ | 81,997 |
| August | 7535 | $ | 81,816 |
| September | 7549 | $ | 81,895 |
| October | 7592 | $ | 82,156 |
| November | 7579 | $ | 82,092 |
Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken.
Calculate the following using the high-low method:
| Variable Cost per unit produced (round to 2 decimal place) | $ |
| Overall Fixed Cost portion of Inspection Costs (round to 2 decimal place) | $ |
| Cost equation for Inspection Costs (in the linear equation format) | Y= |
| Estimated Inspection costs when 973 units are produced (round to nearest whole dollar) |
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