Alumina Inc. mines alumina ore for commercial distribution. You have been asked to provide an estimate

of mining costs using tons of alumina mined as the cost driver. Below are data from the previous

fiscal year:

a$.$ Using the high$-$low method to analyze mixed costs and the data above, provide the cost equation

that can be used to estimate Mining Costs.

b$.$ The forecast estimates the tons of Alumina to be mined next month is $16,000.$ Using the cost

equation developed in part a$.$ what is the estimate for Mining Costs at $16,000$ tons mined?

c$.$ Although the high$-$low method is not the most accurate method to estimate costs, this method is

often used for cost estimation. Why is the high$-$low method often used to estimate costs?