empe Office Services and Supplies (TOSS) provides various products and services in the Tempe esearch 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-squared Number of observations X coefficient Month July August September October November December 30.874686 0.970922 19,550 18,150 22,150 20,400 he regression output was based on the following data: Number of Color Copy Color Copies 25,900 23,000 0.081144 6 Department Costs $ 2,095 1,955 1,600 1,475 1,815 1,725 equired: What is the variable cost per color copy for TOSS? . What is the fixed cost for the Color Copy Department? . Based on the regression output obtained by the controller, what cost formula should be used to stimate future total costs for the Color Copy Department? Enter answer as an equation in the form of y= + bx. -a. Use the high-low method to estimate the variable and fixed costs for the Color Copy Department. -b. What cost formula should be used based on your analysis? Enter answer as an equation in the form of = a + bx. . If 22,800 copies are made during January, what is the total cost predicted by each method?
empe Office Services and Supplies (TOSS) provides various products and services in the Tempe esearch 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-squared Number of observations X coefficient Month July August September October November December 30.874686 0.970922 19,550 18,150 22,150 20,400 he regression output was based on the following data: Number of Color Copy Color Copies 25,900 23,000 0.081144 6 Department Costs $ 2,095 1,955 1,600 1,475 1,815 1,725 equired: What is the variable cost per color copy for TOSS? . What is the fixed cost for the Color Copy Department? . Based on the regression output obtained by the controller, what cost formula should be used to stimate future total costs for the Color Copy Department? Enter answer as an equation in the form of y= + bx. -a. Use the high-low method to estimate the variable and fixed costs for the Color Copy Department. -b. What cost formula should be used based on your analysis? Enter answer as an equation in the form of = a + bx. . If 22,800 copies are made during January, what is the total cost predicted by each method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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-squared
Number of observations
X coefficient
Month
July
August
September
October
November
December
The regression output was based on the following data:
Number of Color Copy
Color
Copies
25,900
23,000
19,550
18, 150
22,150
20,400
30.874686
0.970922
Req 1
6
0.081144
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.
Req 2
Variable cost
Department
Costs
$ 2,095
1,955
1,600
1,475
1,815
1,725
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 22,800 copies are made during January, what is the total cost predicted by each method?
Req 3
Complete this question by entering your answers in the tabs below.
Req 5A
Req 5B
Req 6
What is the variable cost per color copy for TOSS?
Note: Enter your answer in cents, rounded to 1 decimal place (i.e., $0.076 should be entered as 7.6).
per color copy (in cents)
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