Question

Furlan Printing Corp., a book printer has provided the following data Titles Printed May July August September October November December Press Setup Cost 3,269 3,32 3.787 3.095 3,706 3,65e 3,652 3.300 Management believes that the press setup cost is a mixed cost that depends on the number of titles printed. (A specific book that is to be printed is called a "title" Typically, thousands of copies will be printed of each title. Specific steps must be taken to setup the presses for printing each title-for example, changing the printing plates. The costs of these steps are the press setup costs.) Required: Estimate the variable cost per title printed and the fixed cost per month using the least squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost to the nearest dollar amount) Variable cost per title printed Fbxed cost per month

Answer 1

I Solutions Titles pointed I press set up, . Cost I (9) EX exy 28 3269 | 784 3302 3787 May June July August September October November December 3095 3706 37 3650 38 3652 34 - 3300 sul 11681 1529 1521 1369 114u4 1156 91532 95758 lis5267 71185 144534 13soso J 138776 112 200 Total 1244302 269 211GI. 9325 Variable cost per unit (b)= b (Bay) - Ex@y). n (en - (Ex) 841204301)-(269) 21761 8 (9325)– (269² 2486701 2239 = 1lto .63 unit t.

fireed cost a) Efy bear 27761- 110-G3X 269 (270 998.47) 8 = (33874.80/month 1 Variable cost Fixed cost 1110.63 $33874.8) perunit per month