Martinez and Company is trying to determine the cost behaviour of their packaging costs.the following data are available for the past six months:

Number ofCosts

MonthpackagesIncurred

Janaury5,000$4,200

February3,800$3,800

March4,200$3,855

Arpil4,800$4,050

May5,720$5,078

June3,740$3,791

Required:

Use the high-low method to:

a.determine the varaiable cost per package

b. determine the fixed component of packaging costs

c.determine the cost formula for packaging costs

d.Using the formula from part c what would the total packaging costs be if the company had 4,900 packages?