Assignment
Sox Company has the following 12 months of cost data.
|
Months
|
Units
|
Costs
|
|
Jan
|
110
|
$ 27,500
|
|
Feb
|
130
|
$ 34,200
|
|
Mar
|
140
|
$ 40,100
|
|
Apr
|
145
|
$ 32,900
|
|
May
|
190
|
$ 47,300
|
|
Jun
|
150
|
$ 43,700
|
|
Jul
|
185
|
$ 49,300
|
|
Aug
|
160
|
$ 41,100
|
|
Sep
|
120
|
$ 35,200
|
|
Oct
|
140
|
$ 38,500
|
|
Nov
|
160
|
$ 48,600
|
|
Dec
|
175
|
$ 43,300
|
1. Using the High Low Method, what is the estimate for variable costs, fixed costs and the cost formula?
2. Using regression, what is the estimate for variable costs, fixed costs, the cost formula, r, and r2?