1.Dave's Dogs sells steamed hot dogs for $2.50 each. The company provided the following units and total cost data concerning its hotdog sales for the last six months of 2017:

.

CostUnits

July$3,0202,400

August2,7952,150

September3,0402,300

October2,7002,250

November2,7502,160

December3,0852,340

a.Use the high-low method to estimate fixed and variable costs.

b.Estimate total profit in a month when 2,200 hotdogs are sold.

c.Based on these estimates, calculate the number of hotdogs that must be sold to break-even.

d.How does linear regression differ from the high-low method in estimating fixed and variable costs?