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The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 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" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost per call per month

The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 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" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost per call per month

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 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" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost per call per month
Transcribed Image Text:The costs of a company's call center for a number of recent months are listed below: Calls Taken Call Center Cost April May 7,570 $ 82,069 7,539 $ 81,882 June 7,580 $ 82,133 July 7,578 $.82,106 August 7,545 $ 81,925 September October 7,559 $ 82,004 November 7,602 $ 82,264 7,589 $ 82,201 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" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Variable cost Fixed cost per call per month
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