Problem #$6$: CostsThe University of Maine at Presque Isle has hired you, a managerial accounting student enrolled this semester, to analyze the cost of their I$/$T services

they provide to their students. UMPI has given you the following data which shows the monthly total costs of providing I$/$T services, as well as the number of

students who are using the I$/$T services each month.

Month

Number of

Students Using

I$/$T Services

Total Cost of I$/$T

Services

January $1,700225,500$$

February $2,000241,700$$

March $2,150249,800$$

April $2,200252,500$$

May $2,500268,400$$

June $650168,100$$

July $500159,500$$

August $1,000187,500$$

September $1,450211,900$$

October $1,800231,500$$

November $2,100247,200$$

December $2,350259,900$$

Answer the following questions in good form. Be sure to provide the detail $($forumulas$)$ as to how you arrived at each answer.

In other words, be sure to show your work! Do not round. Take number out to $2$ decimal places.

Use the High$-$Low method of accounting to answer the following questions:

$1.$ What is the variable cost per unit?

$2.$ What is the fixed cost?

$3.$ UMPI plans to see an increase in student enrollment over the next two years, so they have asked you to calculate the total cost

of providing services to $3,100$ students for projected year $2024$ and $3,500$ students for projected year $2025.$

$4.$ Discuss the limitations of using the High$-$Low method.