Month Units Produced Processing Cost

1 4,500 $38,000

2 11,000 $52,000

3 12,000 $56,000

4 5,500 $40,000

5 9,000 $47,000

6 10,500 $52,000

7 7,500 $44,000

8 5,000 $41,000

9 11,500 $52,000

10 6,000 $43,000

11 8,500 $48,000

12 10,000 $50,000

13 6,500 $44,000

14 9,500 $48,000

15 8,000 $46,000

1. Don't do parts 1 and 2 of e5-2 (p. 216) in your book. Instead use the company's historical data for months 1 to 15 and

(i) find the High-Low equation for this company, and then

(ii) use the High-Low equation to predict the processing cost for month 20 when the company plans to produce 7,000 units, and also

(iii) use the High-Low equation to predict the processing cost for month 21 when the company plans to produce 10,300 units.

You need to show CLEAR calculations to support your answers.