High-low method and break-even analysis Thistlethorn Carpeting Company installs com- mercial and residential floor carpeting. One type of carpet that it, sells is priced at $15 per square yard, including installation. The company completed six contracts using this type of carpet during the past month and collected the following cost data for each contract.

The company is now bidding on a 1,200 square yard contract and wants to determine in advance what profit it can expect to earn.

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Total Square Job No. Cost Yards 12 16 256926 $7,000 350 16,000 1,100 9,000 700 13,000 1,000 17,000 1,600 15,000 1,550