Hallaway Inc. operates a chain of shops. The company's chief executive officer is interested in accumulating some information on the utility costs incurred by the company.

You have been asked to analyze the following twelve months data.

Month	Utility Cost	Number of Units
January	$ 10,200	15,000
February	$ 10,600	15,600
March	$ 11,300	16,000
April	$ 12,600	18,400
May	$ 12,800	19,600
June	$ 13,400	21,600
July	$ 14,070	23,600
August	$ 14,000	22,400
September	$ 12,400	19,000
October	$ 12,200	18,000
November	$ 11,200	17,000
December	$ 11,800	18,000

Required:

Using the high-low method answer the below noted questions.

The variable rate is $___________ per unit.

Round your answer to the nearest penny.

Using the variable rate you entered above, the fixed cost per month is $____________.

Round your answer to the nearest dollar.

The CEO would like to understand what the advantages and disadvantages of the high-low method.

From the list provided below, select the advantage of the high-low method.

Enter the LETTER into the space provided. For instance, if you choose (B), enter the letter B.

Listing of choices:

(A) This method uses two data points.

(B) This method is objective.

(C) This method uses all data points.

(D) This method is subjective.

(E) This method excludes outliers automatically.