Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 440,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows:

Account	Operating Cost			Behavior
Supplies	$	350,000		All variable
Supervision		220,000		$	150,000	Fixed
Truck expense		1,130,000		$	190,000	Fixed
Building leases		865,000		$	560,000	Fixed
Utilities		210,000		$	125,000	Fixed
Warehouse labor		865,000		$	135,000	Fixed
Equipment leases		750,000		$	590,000	Fixed
Data processing equipment		990,000		All fixed
Other		850,000		$	410,000	Fixed
Total	$	6,230,000

Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business.

Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year:

Month	Cases			Price Index			Operating Costs
1		350,000			116		$	5,739,139
2		367,000			118			5,846,638
3		363,000			119			5,889,905
4		385,000			123			5,967,617
5		379,000			125			5,979,135
6		400,000			126			6,083,364
7		372,000			129			5,958,495
8		417,000			134			6,173,868
9		403,000			134			6,166,130
10		426,000			133			6,226,625
11		422,000			137			6,248,799
12		437,000			140			6,402,255

These data are considered representative for both past and future operations in Brazil.

Required:
(a)	Compute an estimate of operating costs assuming that 440,000 cases will be shipped next month based on the controller's analysis of accounts.

(b)	Use the high-low method to compute an estimate of operating costs assuming that 440,000 cases will be shipped next month. (Round variable costs to five decimal places. Round your other intermediate calculations and final answer to nearest whole dollar value.)

References

(c)

Compute an estimate of operating costs assuming that 440,000 cases will be shipped next month by using the results of a simple regression of operating costs on cases shipped. (Round variable costs to five decimal places. Round your other intermediate calculations and final answer to nearest whole dollar value.)

(d)

Compute an estimate of operating costs assuming that 440,000 cases will be shipped next month by using the results of a multiple regression of operating costs on cases shipped and the price level. Assume a price level of 140 for next month. (Round variable costs to five decimal places. Round your other intermediate calculations and final answer to nearest whole dollar value.)