Break-even analysis with high-low estimation Pyd Pyper Company owns a unique pro- cess tor exterminating rats from cities. The company charges a flat fee plus a certain variable amount that changes with a city's rat population. Below are revenue and operating data for the last six contracts.

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City Hummel Himmel . Homily Hamilot Hamlet Hummer Operating Cost Rat Population Total Revenue ..... $ 70,000 400,000 $ 55,000 80,000 500,000 85,000 90,000 1,000,000 130,000 125,000 1,500,000 165,000 110,000 115,000 1,200,000 1,350,000 140,000 120,000 REQUIRED The company is negotiating a contract with the city of Hamelin which has 110,000 people and a rat population estimated at 1,100,000. a. Use the rat population and operating costs with the high-low method to estimate the total cost equation for the operation. b. Use the rat population and revenue with the high-low method to estimate the total revenue equation. c. Calculate the break-even point in units and dollars for the company's operations based on your estimates in parts a and b. d. Use the estimate of rat population for Hamelin to determine the expected profit or loss on the contract.