The Answer is The solution using Microsoft Excel functions is: slope = $6.38 per call intercept = $43,652 per month The solution using the formulas in the text is: n = 8 sumX = 21,016 sumY = $483,359 sumXY = $1,269,796,718 sumX2 = 55,211,010 b = [n(sumXY)- (sumX)(sumY))]/[n(sumX^2)- (sumX)^2] = [8($1,269,796,718)- (21,016)($483,359))]/[8(55,211,010)- (21,016)^2] = $6.38 a = [(sumY)- b(sumX)]/n = [($483,359)- $6.38(21,016)]/8 = $43,652 Any difference in the solutions is due to rounding errors when the formulas are used.

Solved

Mccatty Inc

question 1

Essay

Mccatty 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:
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.
$\begin{array} { l c c } & \text { Calls Taken } & \text { Call Center Cost } \\\text { April ............ } & 2,613 & \$ 60,339 \\\text { May ............... } & 2,614 & \$ 60,345 \\\text { June ............ } & 2,640 & \$ 60,495 \\\text { July .......... } & 2,644 & \$ 60,533 \\\text { August .......... } & 2,616 & \$ 60,346 \\\text { September...... } & 2,646 & \$ 60,537 \\\text { October........ } & 2,639 & \$ 60,501 \\\text { November...... } & 2,604 & \$ 60,263\end{array}$

Definitions:

Common Stock

A share of stock is an ownership claim on a firm, entitling its owner to a profit share.

Firm's Profits

The financial gains a company makes after subtracting all its costs from its total revenues.

Capital Goods

Long-lasting goods acquired by businesses to produce goods or services and not intended for immediate sale.

Savings Market

The financial market where savings are channeled from individuals or entities with surplus funds to those who need funds for investment.