Response to the following problem:
Kingbird Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:
| Copy Machine |
| Month |
|
Repair Expense |
|
Copies Made |
| May |
|
$8,870 |
|
|
297,000 |
|
| June |
|
12,950 |
|
|
551,000 |
|
| July |
|
21,350 |
|
|
921,000 |
|
| August |
|
17,130 |
|
|
760,000 |
|
| September |
|
9,810 |
|
|
369,000 |
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity. (Round variable component per copy to 2 decimal places, e.g. 0.15.)