Exercise 6 : Segregation of Semi variable Costs The management of Noy Sports Stadium believes that the number of sporting events each month is a measure of activity for total clean up cost. Shown below are event figures and total clean up costs for Number of Sporting Events Total Clean-up Cost July 28 P 30,900 August 34 34,200 September 16 20,700 October 22 28,200 Required: a. Estimate Noy's cost formula for monthly clean up cost using the high-low method. b. Estimate Noy's cost formula for monthly clean up cost using the least-squares regression method. SOLUTION a. High Low Point MONTH NO. OF TOTAL SPORTING CLEAN-UP EVENTS COSTS July 28 30,900 August 34 34,200 September 16 20,700 October 22 28,200