QUESTION 3: COST BEHAVIOUR-HIGH-LOW METHOD BC Steel Inc. wants to have a better understanding of how their electricity costs behave in relation to machine hours. Management has collected the following data during the first six months of 2021: Machine Electricity Month Hours Costs Jan 720 $126,192 Feb 700 124,263 Mar 680 120,326 730 130,928 Apr May 650 124,354 Jun 710 128,769 Requirement 1: Using the high-low method of cost estimation, calculate the fixed and variable electricity cost components of total electricity costs. Enter answers to two decimal places either with or without commas, eg 12345.67 or 12,345,67 Variable cost component: $ 82.18 Fixed cost component: $ 70940.25 Requirement 2 Write out the mixed cost equation for electricity costs Total electricity costs $70940.25 Fixed costs 82.18 per machine hour Requirement 3: If BC Steel expects to use 750 machine hours in July, what will total expected electricity costs be? Enter answers to two decimal places either with or without commas, eg. 12345.67 or 12,345.67.51 Requirement 4: Using your calculator perform a regression on the data to provide a more accurate equation for electricity costs. Enter answers to two decimal places either with or without commas, e.g. 12345.67 or 12,345.67. Using the regression results, R2 = Does the regression equation equation pass or fail the goodness of fit test? e 15 a the goodness of fit test because The regression equation Translate the R2 result into an understandable statement. Requirement 4 Using your calculator perform a regression on the data to provide a more accurate equation for electricity costs. Enter answers to two decimal places either with or without commas, eg: 1234567 or 12.345.67 Using the regression results, R2 Does the regression equation equation pass or fail the goodness of fit test? e is CP The regression equation the goodness of fit test because Translate the R result into an understandable statement % of the change in is explained by Please answer all parts of the