Mccatty Inc.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:
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.
$$\begin{array} { l c c }
& \text { Calls Taken } & \text { Call Center Cost } \
\text { April ............ } & 2,613 & \$ 60,339 \
\text { May ............... } & 2,614 & \$ 60,345 \
\text { June ............ } & 2,640 & \$ 60,495 \
\text { July .......... } & 2,644 & \$ 60,533 \
\text { August .......... } & 2,616 & \$ 60,346 \
\text { September...... } & 2,646 & \$ 60,537 \
\text { October........ } & 2,639 & \$ 60,501 \
\text { November...... } & 2,604 & \$ 60,263
\end{array}$$

Question

Mccatty Inc.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:
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.
 $$\begin{array} { l c c } 
& \text { Calls Taken } & \text { Call Center Cost } \
\text { April ............ } & 2,613 & \$ 60,339 \
\text { May ............... } & 2,614 & \$ 60,345 \
\text { June ............ } & 2,640 & \$ 60,495 \
\text { July .......... } & 2,644 & \$ 60,533 \
\text { August .......... } & 2,616 & \$ 60,346 \
\text { September...... } & 2,646 & \$ 60,537 \
\text { October........ } & 2,639 & \$ 60,501 \
\text { November...... } & 2,604 & \$ 60,263
\end{array}$$

Quizplus · Accepted Answer

The Answer of Mccatty Inc.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:
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.
 $$\begin{array} { l c c } 
& \text { Calls Taken } & \text { Call Center Cost } \
\text { April ............ } & 2,613 & \$ 60,339 \
\text { May ............... } & 2,614 & \$ 60,345 \
\text { June ............ } & 2,640 & \$ 60,495 \
\text { July .......... } & 2,644 & \$ 60,533 \
\text { August .......... } & 2,616 & \$ 60,346 \
\text { September...... } & 2,646 & \$ 60,537 \
\text { October........ } & 2,639 & \$ 60,501 \
\text { November...... } & 2,604 & \$ 60,263
\end{array}$$