Question
Pharoah Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have
Pharoah Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:
Copy Machine Month Repair Expense Copies Made
May $15,510 312,000
June 24,990 574,000
July 44,110 1,027,000
August 29,550 688,000
September 20,130 440,000
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity.(Round variable component per copy to 2 decimal places, e.g. 0.15.)
Variable Component$ ______________
enter a dollar amount per copy rounded to 2 decimal places per copy
Fixed Component$ _____________________
enter a dollar amount per month rounded to 0 decimal places
per month
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