Question 1 - High-low method Java Joe has been in business for one year and has collected the following cost data for utilities. Joe asks you to help him determine a cost equation to estimate monthly utility costs. Bed Electricity 5 January February March April May June July August September October November December kWh Used 2,400 2,800 3,660 2,700 3.920 4,160 3,480 3,980 4,200 4,100 3,960 4,220 Bill $720.00 $840.00 $1,098,00 $810.00 $1176.00 $1,248.00 $1,044.00 $1,194.00 $1,260.00 $1,230.00 $1188.00 $1,266.00 Telephone Minutes Used Bill 2,200 $184.00 2.120 $182.40 2.480 $189.60 1,960 $179.20 2,800 $196.00 2,880 $197.60 2,340 $186.80 2,620 $192.40 2,560 $191,20 2,380 $187.60 2,100 $182.00 2,700 $97.00 Water Gallons Used BIII 61,120 $120.00 53.400 $120.00 62,900 $120.00 59,930 $120.00 61.136 $120.00 51,080 $120.00 65,380 $120.00 62,444 $120.00 67,080 $120.00 63,940 $120.00 57,200 $120.00 68,200 $120.00 Required: the precedinn costs is variable fixed, or mixed and why March April May June July August September October November December 3,660 2,700 3,920 4,160 3,480 3,980 4,200 4,100 3,960 4,220 $1,098,00 $810.00 $1,176.00 $1,248.00 $1,044.00 $1,194.00 $1,260.00 $1,230,00 $1,188.00 $1,266.00 2,480 1,960 2,800 2,880 2,340 2,620 2,560 2,380 2,100 2,700 $189.60 $179.20 $196.00 $197.60 $186.80 $192.40 $191.20 $187.60 $182.00 $97.00 62,900 59,930 61,136 51,080 65,380 62,444 67,080 63,940 57,200 68,200 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 $120.00 Required: (a) Explain to Joe whether each of the preceding costs is variable, fixed, or mixed and why. (b) Using the high-low method, determine the cost equation for each cost. (c) Combine the cost equations you determined in (b) to obtain a monthly utility cost equation for Java Joe's. (d) Joe expects to use 3,600 kilowatt hours of electricity, make 2,400 minutes of telephone calls, and use 60,000 gallons of water next month. Help Joe estimate the total utility cost for next month