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?