Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of
Grawburg Incorporated 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 Call Center Cost Taken April May 7,762 $ 84,150 7,731 $ 83,967 June 7,772 $ 84,214 July 7,771 $ 84,197 August 7,736 $ 83,999 September October November 7,748 $ 84,054 7,793 $ 84,331 7,781 $ 84,280 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.) Answer is complete but not entirely correct. Variable cost Fixed cost $ 6.02 per call S 37,345 per month
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