Question

Grawburg Inc. maintains a call center to take orders, answer questions, and handle complaints. The costs...

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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