Question 1
Wildhorse Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:
Copy Machine |
|||||||
Month |
Repair Expense |
Copies Made |
|||||
May |
$31,710 |
285,000 |
|||||
June |
54,810 |
526,000 |
|||||
July |
92,410 |
892,000 |
|||||
August |
79,510 |
773,000 |
|||||
September |
41,010 |
383,000 |
Determine the fixed and variable components of repair expense using
the high-low method. Use copies made as the measure of activity.
(Round variable component per copy to 2 decimal places,
e.g. 0.15.)
Variable Component |
$ |
per copy |
||
Fixed Component |
$ |
per month |
Determine the fixed and variable components of repair expense using the high-low method.
Refer to the below image for the above mentioned requirement, in a detailed way of solution.
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