Kendall Ltd. operates a chain of shops. The company's chief executive officer is interested in accumulating some information on the utility costs incurred by the company.

You have been asked to analyze the following twelve months' data.

Month. Utility Cost. Number of

January$3,82518,750

February$3,97519,500

March$4,23820,000

April$4,72523,000

May$4,80024,500

June$5,02527,000

July$5,27629,500

August$5,25028,000

September$4,65023,750

October$4,57522,500

November$4,20021,250

December$4,42522,500

Required:

Using the high-low method answer the below noted questions.

The variable rate is $___________ per unit.

Round your answer to the nearest penny.

Using the variable rate you entered above, the fixed cost per month is $____________.

Round your answer to the nearest dollar.

The CEO would like to understand what the advantages and disadvantages of the high-low method.

From the list provided below, select the disadvantage of the high-low method.

Enter the LETTER into the space provided.For instance, if you choose (B), enter the letter B.

Listing:

(A)This method provides an R squared value.

(B)This method is simple to calculate.

(C)This method automatically includes outliers.

(D)This method uses all the data points.

(E)This method is subjective.