TB Problem Qu. 6A-70 (Algo) Grawburg Incorporated maintains a call center to take... 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 Calls Taken 8,460 8,429 8,470 8,469 8,433 September 8,444 October 8,486 November 8,474 Call Center Cost $ 91,717 $ 91,548 $ 91,777 $ 91,759 $91,567 $91,605 $ 91,831 $ 91,787 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" tor
TB Problem Qu. 6A-70 (Algo) Grawburg Incorporated maintains a call center to take... 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 Calls Taken 8,460 8,429 8,470 8,469 8,433 September 8,444 October 8,486 November 8,474 Call Center Cost $ 91,717 $ 91,548 $ 91,777 $ 91,759 $91,567 $91,605 $ 91,831 $ 91,787 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" tor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:TB Problem Qu. 6A-70 (Algo) Grawburg Incorporated maintains a call center to take...
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
Calls.
Taken
8,460
8,429
8,470
8,469
8,433
$ 91,567
September 8,444
$ 91,605
October
8,486
$ 91,831
November
8,474
$91,787
Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken.
Call Center Cost
$ 91,717
$91,548
$ 91,777
$ 91,759
Required:
Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to
2 decimal places and the "Fixed cost" to the nearest dollar amount.)
Variable cost
Fixed cost
Answer is complete but not entirely correct.
$
10.05 per call
6,573 per month
$
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