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 firm's 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 1 2 3 4 5 6 7 8 9 12 11 12 Maintenance Costs $ 2,685 2,731 2,782 2,886 2,920 3,073 2,930 2,971 2,843 2,628 2,648 2,955 Machine Hours 1,799 1,908 1,926 1,986 2,130 2,256 2,142 2,166 2,034 1,692 1,860 1,710 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.) Maintenance cost 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.) MAINTENANCE COSTS $3,500 Tools $3,000 1st Month 2nd Month $2,500 $2,000 3rd Month 4th Month $1,500 5th Month 6th Month $1,000 $500 0 500 1000 1500 2000 2500 3000 MACHINE HOURS