20. High-Low Method. The city of Rockville reported the following annual cost data for maintenance work performed on its fleet of trucks. Reporting Period (Year) Total Costs Level of Activity (Miles Driven) Year 1 $ 750,000 225,000 Year 2 850,000 240,000 Year 3 1,100,000 430,000 Year 4 1,150,000 454,000 Year 5 1,250,000 560,000 Year 6 1,550,000 710,000 Required: 1. Use the four steps of the high-low method to estimate total xed costs per year and the variable cost per mile. State your results in the cost equation form Y = f+ vx. 2. What would the estimated costs be if the trucks drove 500,000 miles in year 7? 21. Regression Analysis. Regression analysis was run using the data in Brief Exercise 22 for the city of Rockville. The output is shown here: Coefficients yEinteroept 441,013 xvariable 1.53 Required: 1. Use the regression output to develop the cost equation Y = f+ VX by lling in the dollar amounts for fand V. 2. What would the city of Rockville's estimated costs be if its trucks drove 500,000 miles in year 7? 22. Contribution Margin Income Statement. Last year Pod Products, Inc., sold its product for $250 per unit. Production costs totaled $40,000 (25 percent xed, 75 percent variable). Selling and administrative costs totaled $150,000 (10 percent xed, 90 percent variable). Pod Products produced and sold 1,000 units last yean Required: Prepare a contribution margin income statement for Pod Products, Inc. 23. Relevant Range. Jersey Company produces jerseys for athletic teams, and typically produces between 1,000 and 5,000 jerseys annually. The accountant is asked to estimate production costs for this coming year assuming 9,000 jerseys will be produced. Required: What is meant by the term relevant range, and why is the relevant range important for estimating production costs for this coming year at Jersey Company