Grawburg 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:
Calls Taken |
Call Center Cost |
||
April |
7560 |
$ |
81,960 |
May |
7529 |
$ |
81,773 |
June |
7570 |
$ |
82,025 |
July |
7568 |
$ |
81,997 |
August |
7535 |
$ |
81,816 |
September |
7549 |
$ |
81,895 |
October |
7592 |
$ |
82,156 |
November |
7579 |
$ |
82,092 |
Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken.
Calculate the following using the high-low method:
Variable Cost per unit produced (round to 2 decimal place) |
$ |
Overall Fixed Cost portion of Inspection Costs (round to 2 decimal place) |
$ |
Cost equation for Inspection Costs (in the linear equation format) |
Y= |
Estimated Inspection costs when 973 units are produced (round to nearest whole dollar) |
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