Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: April May June July August September October November Calls Taken Call Center Cost 6,801 6,770 6,811 6,807 6,777 6,787 6,829 6,813 Variable cost Fixed cost $73,732 $73,530 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. $ 73,801 $ 73,752 $ 73,586 $ 73,629 $73,900 $ 73,795 Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. Note: Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. $ 6.23 per call 31,327 per month
Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: April May June July August September October November Calls Taken Call Center Cost 6,801 6,770 6,811 6,807 6,777 6,787 6,829 6,813 Variable cost Fixed cost $73,732 $73,530 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. $ 73,801 $ 73,752 $ 73,586 $ 73,629 $73,900 $ 73,795 Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. Note: Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. $ 6.23 per call 31,327 per month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Grawburg Incorporated maintains a call center to take orders, answer questions, and
handle complaints. The costs of the call center for a number of recent months are listed
below:
April
May
June
July
August
September
October
November
Calls Taken Call Center Cost
6,801
6,770
6,811
6,807
6,777
6,787
6,829
6,813
Management believes that the cost of the call center is a mixed cost that depends on the
number of calls taken.
Variable cost
Fixed cost
$73,732
$ 73,530
$ 73,801
$ 73,752
$ 73,586
$ 73,629
$73,900
$ 73,795
Required:
Estimate the variable cost per call and fixed cost per month using the least-squares
regression method.
Note: Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the
nearest dollar amount.
$
$
6.23 per call
31,327 per month
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