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	108,000		$	70,500
February	66,000			65,400
March	69,000			66,600
April	75,000			67,800
May	93,000			69,000
June	99,000			70,200
July	123,000			70,200
August	93,000			68,700
September	93,000			69,300
October	87,000			68,400
November	126,000			72,600
December	120,000			71,350

Required:

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 77,000 pints of applesauce are produced.