Chocolates by Carolyn produces Chocolate candies, helping America to celebrate holidays, indulge in their sweet tooth, and promote the obesity epidemic. Information about production and cost in 2019 follows:

Prepare a scattergraph using the graph paper provided

1.Draw a line on the graph that you believe best fits the two points. What is your estimate of fixed costs?

2. Calculate variable cost per unit and fixed costs using the High-Low Method. Use the highest level selected to estimate fixed costs. (Show your work.) Using this method, what is the estimate of variable cost per unit and fixed costs?

3. Using regression analysis in Excel, calculate total fixed costs and variable cost per unit. Also indicate what percentage of variable cost is directly related to fixed costs. (Print your regression data and attach it to this page).

4. On a separate sheet of paper, answer the following (you can type it if you want): a. Production in January and August were the same, but costs were higher in January. What might be a reason for this? b. Why was production so much higher in February, April, and October? c. What might be a reason why costs were so much higher in February than October?

Chocolates by Carolyn produces Chocolate candies, helping America to celebrate holidays, indulge in their sweet tooth, and promote the obesity epidemic. Information about production and cost in 2019 follows: JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER PRODUCTION COST 180,000 $400,000 650,500 $1,200,000 250,000 $450,000 750,000 $990,000 350,000 $490,000 280,000 $465,000 150,000 $300,000 180,000 $350,000 170,000 $343,000 730,000 $980,000 270,000 $465,000 550,000 $995,000 1. Prepare a scattergraph using the graph paper provided in this .pdf file. Draw a line on the graph that you believe best fits the two points. What is your estimate of fixed costs? 2. Calculate variable cost per unit and fixed costs using the High-Low Method. Use the highest level selected to estimate fixed costs. (Show your work.) Using this method, what is the estimate of variable cost per unit and fixed costs? 3. Using regression analysis in Excel, calculate total fixed costs and variable cost per unit. Also indicate what percentage of variable cost is directly related to fixed costs. (Print your regression data and attach it to this page) 4. On a separate sheet of paper, answer the following (you can type it if you want): Production in January and August were the same, but costs were higher in January. What might be a reason for this? a. b. Why was production so much higher in February, April, and October? c. What might be a reason why costs were so much higher in February than October