The costs of a book printer for the last several months are as follows: Titles Printed Press Setup Cost May June 25 $ 3,295 26 $ 3,328 July 38 $ 3,813 August 20 $ 3,121 September 36 $ 3,732 October 34 $ 3,676 November 35 $ 3,678 December 31 $ 3,920 Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.) Required: Estimate the variable cost per title printed and the 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 per title printed per month
The costs of a book printer for the last several months are as follows: Titles Printed Press Setup Cost May June 25 $ 3,295 26 $ 3,328 July 38 $ 3,813 August 20 $ 3,121 September 36 $ 3,732 October 34 $ 3,676 November 35 $ 3,678 December 31 $ 3,920 Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.) Required: Estimate the variable cost per title printed and the 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 per title printed per month
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The costs of a book printer for the last several months are as follows:
Titles
Printed
Press Setup
Cost
May
June
25
$
3,295
26
$
3,328
July
38
$
3,813
August
20
$
3,121
September
36
$
3,732
October
34
$
3,676
November
35
$
3,678
December
31
$
3,920
Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to
be printed is called a "title". Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the
presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.)
Required:
Estimate the variable cost per title printed and the 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
per title printed
per month
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