Penelope & Company is a small manufacturer specializing made to order cosmetics. All promotions are done through the sales staff who are paid on commission but have a business expense account to motivate potential customers. The sales manager, Wanda has concerns about the amount of charges on one of her sales representatives, Lauren. She has collected records on the number of sales per month and total business expenses charged on the account by the other members of the sales staff.

Month	Number of Sales	Business Expense Accounts
1	100	$ 65,600
2	84	59,000
3	72	61,500
4	56	55,000
5	82	65,500
6	50	52,500
7	68	55,500
8	24	41,500
9	20	40,000
10	50	52,000
11	60	52,500
12	36	47,500
13	60	59,500
14	40	48,000
15	72	57,000
16	36	47,000
17	74	58,500
18	58	53,000
19	36	48,500
20	98	66,000

1. Use the high-low method and compute the cost equation forthe production of this product.

2. Lauren reported sales of 65 and expenses of totaling $ 75,000. Develop data to confront Zac during his annual

In a memorandum, discuss the performance of the following three sales representatives. Representative Sales Business Account Expense 70 $ 58,000 82 $ 62,000 64 $ 52,000