1. Hi i've got this question regarding the high-low method --> the question is

Use the high-low method for estimating the cost function for annual delivery costs.

Quarter Delivery Cost Units delivered

First $360 125

Second $400 150

Third $340 125

Quarter $300 100

Total $1,400 500

Here is my answer as follows just unsure if correct would love some help

High observation - Second quarter 150 delivery units

Cost = $400

Low capacity - 4^thquarter; 100 units delivered

Cost $300

What is the variable rate?

(400 - 300) / (150 - 100)

100 / 50 = $2

Fixed cost

400 = fixed cost + 150 x $2

Fixed cost = 400 - 300 = $100

$300 = fixed cost + 100 x $2

fixed cost = 300 - 200 = $100

Now computing Annual estimate delivery cost - Remember 1400/500 = $2.8

y = a + bx

y = 100 + (2.8 x Units delivered)

Y = 100 + (2.8 x 500)

Y = 100 + 1400

Y = $1500