Chegg: Manageria x+ oks/9781119234173/cfi/6/30!/4/18/10/2/2@0:14.9 2-22 High-low method (LO 2) Harlan Gravity Grips produces spike sets for track shoes. CEO Brittany Harlan has gathered the following information about the company's sales volume and marketing cost for the past six months. Sales Volume Total Marketing Costs January 550,700 February 390,50o March April May June 561,000 543,000 546,600 552,900 $82,770 $74,525 $83,050 $82,330 $82,480 $82,860 Required a. Using the high-low method, compute the variable marketing cost per spike set. b. Compute the total fixed marketing cost. c. Represent the marketing cost function in equation form. d. Examine the data and identify the potential outlier. e. Recalculate the marketing cost function, removing the potential outlier. f. Which of the two cost functions you calculated would be appropriate to use in estimating future marketing costs? Why? 2-23 Cost estimation (LO 2) Smythe, Ltd., provides nationwide passenger train service on 21,000 miles of routes. Selected operating data for the latest fiscal year are shown below. Passengers (ooos) Passenger Miles (ooos) Train Miles (000s) Month Fuel Expense (ooos)