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Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several

 

Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a 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 January Pints of Applesauce Energy Cost February March April May June July August September October November December Required: Produced 36,800 $ 25,200 22,800 23,900 23,800 23,800 25,800 24,250 31,800 24,700 33,800 25,150 41,800 29,800 31,800 24,600 31,800 24,800 29,800 24,500 42,800 25,900 40,800 26,750 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. 2. Predict the energy cost for a month in which 44,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.

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