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 $2022$ follows:

PRODUCTION COST

JANUARY $180,000$ $$400,000$

FEBRUARY $650,000$ $$1,200,000$

MARCH $250,000$ $$450,000$

APRIL $740,000$ $$995,300$

MAY $350,000$ $$490,000$

JUNE $280,000$ $$465,000$

JULY $150,000$ $$300,000$

AUGUST $180,000$ $$350,000$

SEPTEMBER $170,000$ $$343,000$

OCTOBER $780,000$ $$990,000$

NOVEMBER $270,000$ $$465,000$

DECEMBER $550,000$ $$995,000$

$1.$ Prepare a scattergraph using the graph paper provided on OAKS. 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. 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.

$4.$ Answer the following:

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?