E-T is an online service provider that is particularly popular with college students. The company is interested in estimating the fixed and variable components of its services costs. The manager believes that these costs are driven by the number of hours of services provided. The following information was gathered for the last six months of business (in excel file).

A. Compute the average cost per hour for the six-month period. B. Use the high-low method to estimate the total fixed cost and the variable cost per hour.

Month January February March April May June Number of Hours Tutoring Costs 25,000 308.000 41,000 420,000 29,000 352.000 31,000 373,000 34.000 378,000 252,000 18,000