Problem:
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 $ 8,500 300,000
June 12,500 500,000
July 20,500 900,000
August 16,500 700,000
September 10,500 400,000
Required to do:
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity.