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		2,645			1,599
2		2,690			1,696
3		2,740			1,712
4		2,843			1,765
5		2,876			1,893
6		3,027			2,005
7		2,886			1,904
8		2,926			1,925
9		2,800			1,808
10		2,588			1,504
11		2,608			1,653
12		2,910			1,520

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. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Do not round intermediate calculations, with the exception of MAPE for each month, which should be rounded to three decimal places. Input your final answer as a percentage rounded to 1 decimal place (i.e., .0540 = 5.40%).)