1) You are the managing partner of an accounting firm in the New Westminster area. You note over the year there is a relationship between the number of hours billed to clients and the staff salary paid. The following is the data you have accumulated. You plan to use the High-Low method. (6) (Calculations to 3 decimals)

Month	Staff Salaries		Hours Billed
1	$400,000		4,000
2	350,000		3,100
3	435,000		5,000
4	477,000		6,000
5	575,000		8,000
6	529,000		7,000

a. Calculate the variable cost. (1)

b. Calculate the fixed costs (1)

c. Determine the cost function equation (2)

d. What is a better alternative to the high-low method and indicate why. (2)