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Galarneau Inc Management Believes That the Cost of the Call Center Is

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Essay

Galarneau 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  February.7,851$85,115March. 7,820$84,934April. 7,861$85,178May. 7,860$85,161June 7,825$84,965July . 7,836$85,009August. 7,879$85,262September 7,866$85,201\begin{array}{lcc}&\text { Calls Taken } & \text { Call Center Cost } \\\text { February.}&7,851 & \$ 85,115 \\\text {March. }&7,820 & \$ 84,934 \\\text {April. }&7,861 & \$ 85,178 \\\text {May. }&7,860 & \$ 85,161 \\\text {June }&7,825 & \$ 84,965 \\\text {July . }&7,836 & \$ 85,009 \\\text {August. }&7,879 & \$ 85,262 \\\text {September }&7,866 & \$ 85,201\end{array}

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.

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