4-3. High-Low, Break-Even Lancer Media produces a high-end DVD player that sells for $1,250. Total operating expenses for the past 12 months are as follows: Units produced Cost and sold August 125 $112,670 September 145 121,990 October 150 129,500 November 160 131,500 December 16 139,700 January 140 117,400 February 145 125,600 March 135 115,400 April 130 116,140 May 135 119,220 June 145 121,700 July 140 119,050 Required a. Use the high-low method to estimate fixed and variable costs. b. Based on these estimates, calculate the break-even level of sales in units. c. Calculate the margin of safety for the coming August assuming estimated sales of 160 units. d. Estimate total profit assuming production and sales of 160 units. e. Comment on the limitations of the high-low method in estimating costs for Lancer Media