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The Management of Rutledge Corporation Would Like to Better Understand

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The management of Rutledge Corporation would like to better understand the behavior of the company's warranty costs.Those costs are listed below for a number of recent months: The management of Rutledge Corporation would like to better understand the behavior of the company's warranty costs.Those costs are listed below for a number of recent months:   Management believes that warranty cost is a mixed cost that depends on the number of product returns.  Required: Estimate the variable cost per product return and the fixed cost per month using the least-squares regression method. Management believes that warranty cost is a mixed cost that depends on the number of product returns.

Required:
Estimate the variable cost per product return and the fixed cost per month using the least-squares regression method.

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Definitions:

Terabyte

A unit of digital data storage equaling approximately one trillion bytes or 1,024 gigabytes, used to quantify the storage capacity of large systems.

Gigabyte

A unit of digital information storage or memory capacity equal to approximately one billion bytes (or 1,000 megabytes).

Megabyte

A unit of digital information storage or transmission comprised of approximately one million bytes (1,000 kilobytes or 1,024 kilobytes in binary).

Petabyte

A unit of information or computer storage equal to one quadrillion bytes or 1,024 terabytes, commonly used to measure data capacity on a large scale.

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