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Tempe Office Services and Supplies (TOSS) provides various products and services in the Tempe Research Park, home to numerous high-tech and bio-tech companies. Making color
Tempe Office Services and Supplies (TOSS) provides various products and services in the Tempe Research Park, home to numerous high-tech and bio-tech companies. Making color copies is one of its most popular and profitable services. The controller performed a regression analysis of data from the Color Copy Department with the following results:
Intercept R square Number of observations X coefficient 141.140741 0.91472 6 0.076148 The regression output was based on the following data: Month July August Number of Color Copies 23,800 24,700 19,900 18,450 21,600 19,500 Color Copy Department Costs $1,895 2,060 1,570 1,560 1,835 1,670 September October November December Required: 1. What is the variable cost per color copy for TOSS? 2. What is the fixed cost for the Color Copy Department? 3. Based on the regression output obtained by the controller, what cost formula should be used to estimate future total costs for the Color Copy Department? Enter answer as an equation in the form of y= a + bx. 5-a. Use the high-low method to estimate the variable and fixed costs for the Color Copy Department. 5.b. What cost formula should be used based on your analysis? Enter answer as an equation in the form of y= a + bx. 6. If 22,400 copies are made during January, what is the total cost predicted by each method? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Req 5a Req 5b Reg 6Step by Step Solution
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