Required information [The following information applies to the questions displayed below.] Mendota Foods sells a variety of food products around the world. The company engages directly with individuals with an interest in cooking by offering ideas and recipes in various staff blogs and podcasts. The management team at Mendota believes this drives brand loyalty and allows Mendota to charge a premium for its products. One initiative that Mendota has been running for the last three years is a call center with staff who can provide help and answer questions about cooking in general and Mendota products in particular. The chief financial officer is interested in learning more about the costs of this initiative and how they vary with the demands placed on the center. To help answer the question, the financial staff have collected call center volume (number of calls) and call center cost for the last 12 months. During a discussion of those results, one of the cost analysts suggests that length of the calls (total hours) is probably a better driver of call center costs. The managers asked the analyst to collect the information and report on how it should be used. The combined data follow: Month Number of Calls Call Center Hours 1 $61,250 16,110 2 67,200 17,190 Costs $288,210 268,145 333 Number of Call Center Month Calls Hours 11 123456789022 $61,250 16,110 Costs $288,210 67,200 17,190 268,145 60,300 16,050 238,550 62,050 14,550 244,565 45,300 12,670 182,750 74,200 20,050 280,740 52,150 13,230 252,760 65,650 17,590 282,845 77,550 21,200 314,975 45,300 10,450 153,725 66,750 18,510 292,460 69,950 18,870 271,935 Required: a. Use the high-low method to estimate the fixed and variable portions of call center costs based on call center time (hours). Note: Negative amounts should be indicated by a minus sign. Variable cost (per hour) Fixed cost Month 123456789012 Calls $61,250 Hours Costs 16,110 $288,210 67,200 17,190 268,145 60,300 16,050 238,550 62,050 14,550 244,565 45,300 12,670 182,750 74,200 20,050 280,740 52,150 13,230 252,760 65,650 17,590 282,845 77,550 21,200 314,975 45,300 10,450 153,725 66,750 18,510 292,460 69,950 18,870 271,935 b. Use the results of your high-low analysis to estimate the call center cost for a month with 16,500 hours of call center time. Call center costs Instructions: 1. Click on a point to the right of the graph. 2. Click within the graph to place the point. 3. Enter the exact coordinates in the dialog box that appears to the right of the graph. 4. Click save. 5. To change coordinates already saved, click on a point already placed in the graph, and enter revised coordinates in the dialog box that opens. Mendota Foods Call Center Costs (in dollars) 320000 310000 300000 290000 280000 270000 260000 250000 240000 Month 1 Month 2 Month 3 ! Required information Call Center Costs (in dollars) 320000 310000 300000 290000 280000 270000 260000 250000 240000 230000 220000 210000 200000 190000 180000 170000 160000 150000 140000 130000 120000 110000 100000 22000 20000 18000 16000 14000 12000 Hours 10000 8000 MICHELET 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Using the results from a simple regression of call center cost on call center time (hours), input the following data: d-1. Enter the regression coefficients. d-2. Estimate the cost for a month with 16,500 hours of call center time using the results from a simple regression of call center cost on call center time (hours). Complete this question by entering your answers in the tabs below. Req D1 Req D2 Enter the regression coefficients. Note: Round your answers to 2 decimal places. Intercept Hours < Req D1 Req D2 > Using the results of a multiple regression of call center costs on call center calls and call center time (hours), input the following: e-1. Enter the regression coefficients. e-2. Estimate the call center cost in a month of 62,750 calls and 16,500 hours of call center time (hours) using the results of a multiple regression of call center costs on call center calls and call center time (hours). Complete this question by entering your answers in the tabs below. Req E1 Req E2 Enter the regression coefficients. Note: Round your answers to 2 decimal places. Intercept Number of calls Hours