Horton Manufacturing Inc. produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firms profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow:

Month	Maintenance Costs				Machine Hours
1	$	2,630			1,524
2		2,675			1,617
3		2,725			1,632
4		2,827			1,683
5		2,860			1,805
6		3,010			1,912
7		2,870			1,815
8		2,910			1,835
9		2,785			1,723
10		2,575			1,433
11		2,595			1,575
12		2,896			1,448

Required:

1. Use the high-low method to estimate the fixed and variable portions for maintenance costs. (In your calculations, round "slope (unit variable cost)" to 4 decimal places. Enter the "slope (unit variable cost)" rounded to 4 decimal places and all other calculations, to nearest whole dollar.)

2. Graph the data points to check for possible outliers and determine whether the points selected in requirement 1 are representative of the data. (To earn full credit for this graph you must plot all required points for each curve. While plotting the points a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed.)

3. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.