1. Eagle Company currently produces a single product which sells for $25 a unit. Eagle's fixed costs are 425 and the contribution margin on the sale of this product is 20% and its tax rate is 25%

The number of units Eagle must sell to break even is ? ( )

2. Owl Company hires part-time workers to inspect books for errors. Inspection costs and the number of texts produced last week are as follows

	Total Inspection Costs	Texts prodcued
Monday	$ 40	5
Tuesday	$ 35	4
Wednesday	$ 30	3
Thursday	$ 28	2

Using the two-pount (high-low) method:

(1). The estimated variable cost per unit would be ?

(2). The estimated fixed costs would total ?

Using the semi-average method:

(3). The estimated variable cost per unit would be ?

(4). The estimated fixed costs would total ?

(5). Which method, the two-point (high-low) or the semi-average method is more accurate? why?

(6). How does the graphical differ from the least squares method?