Frederick, financial analyst at YTZ Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Frederick collects the following data on machine-hours worked and utility costs for the past 8 quarters:

Quarter Machine-Hours Utility Costs

1 100,000 $225,000

2 55,000 160,000

3 90,000 210,000

4 105,000 270,000

5 70,000 180,000

6 95,000 250,000

7 85,000 235,000

8 80,000 205,000

Requirement 1. Estimate the cost function for the quarterly data using the high-low method.