H High-Low Method Exercise 4 Harlan Gravity Grips produces spike sets for track shoes. CEO Brittany Harlan has gathered the 5 following information about the company's sales volume and marketing costs. January February March April May June Sales Volume in Units 550,700 390,500 561,000 543,000 546,600 552,900 Total Marketing $82,770 74,525 83,050 82,330 82,480 82,860 16 Required: Use references and formulas for all answers. 17 a. Using the high-low method, compute the variable marketing cost per spike set. Variable Cost High Cost High Volume Low Cost Low Volume K13 : A B C D E FIGHT 16 Required: Use references and formulas for all answers. Using the high-low method, compute the variable marketing cost per spike set. Variable Cost High Cost High Volume Low Cost Low Volume per spike set sold 30 b. Compute the total fixed marketing cost. Solve: Low High Total Cost Variable Cost Fixed Cost 2 - Regression 3 - High-Low 1 - Regression C D FIGH per spike set sold Compute the total fixed marketing cost. Solve: High Low Total Cost Variable Cost Fixed Cost Represent the marketing cost function in equation form. Marketing Cost = Examine the data and identify the potential outlier. Which month is the outlier? (Much different than the other months.) Recalculate the marketing cost function, removing the potential outlier. . F G H I Recalculate the marketing cost function, removing the potential outlier. Variable Cost High Cost High Volume Low Cost Low Volume per spike set sold Compute the total fixed marketing cost. Solve: High Low Total Cost Variable Cost Fixed Cost 572 x fe F G H I Compute the total fixed marketing cost. Solve: High Low Total Cost Variable Cost Fixed Cost Represent the marketing cost function in equation form. (Can be typed) Marketing Cost = 72 h. Which of the two cost functions you calculated would be appropriate to use in estimating future marketing costs? Why