Question 1

Wildhorse 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		$31,710			285,000
June		54,810			526,000
July		92,410			892,000
August		79,510			773,000
September		41,010			383,000

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		$	per copy
Fixed Component		$	per month