Question - High-Low Method
Campus 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 $12,606 444,900
June 18,538 741,500
July 30,402 1,334,700
August 24,470 1,038,100
September 15,572 593,200
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity.