Part A Jack Snow is the new manager of the materials storeroom for Nootka Manufacturing. Jack has been asked to estimate future monthly purchase costs for part no. 123, used in two of Nootka Manufacturing's products. Jack has cost of purchase and quantity data for the past nine months as follows: Month Cost of purchase Quantity purchased January February March April May $12 675 13 000 17 653 15 825 13 125 13 814 15 300 10 233 14 950 2 710 parts 2 810 4 153 3 756 2 912 3 387 3 622 2 298 3 562 June July August September Estimated monthly purchases for this part, based on expected demand of the two products for the rest of the year, are: Month Purchase quantity expected October 3 340 parts November 3710 December 3 040 Required 1) Using the high-low method to determine the equation to estimate the cost of product 123 2) Using the equation from requirement 1, calculate the future expected purchase costs for each of the last three months of the year 3) Jack uses the first nine months data to determine the cost function of regression analysis and obtained the following: y = $2 582.57 + 3.54X. Use the regression results to calculate the expected purchase costs for October, November and December then compare to the result of high-low method (requirement b) and put your comment. Part B Nootka trading Co. Ltd retails two types of luggage carrier: a standard and a deluxe. The budgeted income statement for next period is as follows: Standard Deluxe Total carrier carrier Units sold 187 500 62 500 250 000 Revenues at $28 and $50 per unit $5 250 000 $3 125 000 $8 375 000 Variable costs at $18 and $30 per unit 3 375 000 1875 000 5 250 000 Contribution margins at $10 and $20 per unit $1 875 000 $1 250 000 3 125 000 Fixed costs 2 250 000 Profit $875 000 Required 1) Calculate the break-even point in units, assuming that the planned sales mix is attained. Calculate the break-even point in units: (a) if only standard carriers are sold and (b) if only deluxe carriers are sold. 3) Suppose that 250 000 units are sold but only 50 000 of them are deluxe. Calculate the profit. Calculate the break-even point in units. Compare your answer with the answer to requirement 1. What is the major lesson of this