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 company's energy cost behavior. The following costs were incurred during the past 12 months:

Month Pints of Applesauce Produced Energy Cost

January	109,000		$	70,600
February	67,000			66,100
March	70,000			66,800
April	76,000			67,950
May	94,000			69,100
June	100,000			70,250
July	124,000			70,300
August	94,000			68,800
September	94,000			69,400
October	88,000			68,500
November	127,000			72,700
December	121,000			71,400

Required:

1.

Use the high-low method to estimate the company's 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.

Total energy cost = $_____ + $______ X

2.

Predict the energy cost for a month in which 78,000 pints of applesauce are produced

Energy cost $