Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company

to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce

production is relatively uniform throughout the year. The recently hired controller for the firm is

about to apply the high-low method in estimating the companys energy cost behavior. The following

costs were incurred during the past 12 months:

Month	Pints of Applesauce Produced	Energy Cost
January	113,000	$71,000
February	71,000	$62,900
March	74,000	$67,600
April	80,000	$68,550
May	98,000	$69,500
June	104,000	$70,450
July	128,000	$70,700
August	98,000	$69,200
September	98,000	$69,800
October	92,000	$68,900
November	131,000	$73,100
December	125,000	$71,600

1. Use the high-low method to estimate the companys energy cost behavior and express it in

equation form. use the formula Y=a+bx, where y denotes energy cost for a month and x denotes pints of applesauce produced.

2. Predict the energy cost for a month in which 82,000 pints of applesauce are produced.