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Your boss, Debbie Arless, has gathered the following information regarding customer costs for last year:/ ? 318 ? ? Month Number of Customers Customer Service
Your boss, Debbie Arless, has gathered the following information regarding customer costs for last year:/ ? 318 ? ? Month Number of Customers Customer Service Costs January 341 $524,908 February 402 542,010 March 580,000 Aprile 496 698,340 Maye 385 528,250 June 442 654,660 July 351 541,970 August 480 678,900 September 468,540 October 498 650,000 November 428 626,780 December 400 540,500 ? 330 Debbie would like to estimate customer service costs using the number of customers as the basis for estimation. However, because she has never taken a course in managerial accounting, she does not know how to set up a cost equation. She has therefore approached you for help. Required: 1. Set up a cost equation for monthly customer service costs using the high-low method. 2. Using the equation from part (1), compute the estimated customer service costs if the number of customers is expected to be 575
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