Dillenbeck Printing Cor., a book printer, has provided the following data:
Titles Printed Press Setup Cost
FebruaryAc€¦.. 33 $3,170
MarchAc€¦Ac€¦. 34 $3,203
AprilAc€¦Ac€¦Ac€¦ 46 $3,688
MayAc€¦Ac€¦Ac€¦. 28 $2,996
JuneAc€¦Ac€¦Ac€¦. 44 $3,607
JulyAc€¦Ac€¦Ac€¦.. 42 $3,551
AugustAc€¦Ac€¦. 43 $3,586
SeptemberAc€¦39 $3,413
Management believes that the cost of the call center 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.)
Require:
Estimate the variable cost per title printed and the fixed cost per month using the least squares regression method