Stamp Printing Corp.,
a book printer, has provided the following data:
| Titles Printed | Press Setup Cost | |
| February | 39 | $2,197 |
| March | 40 | $2,218 |
| April | 36 | $2,134 |
| May | 31 | $2,044 |
| June | 48 | $2,424 |
| July | 47 | $2,377 |
| August | 29 | $1,997 |
| September | 45 | $2,353 |
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.)
On the basis of the
above data, you are required to do the following:
- Estimate the variable cost per title printed and the fixed cost per month using the least-squares regression method.
