Question 4.(high-low method) Use the following data for the 4th quarter of 2009:

month	activity volume (#units)	total costs
Oct	90	$5,025
Nov	65	$5,175
Dec	100	$6,400

Required: a) Estimate fixed costs and unit variable costs using the high-low method.(hint: should you use the observations with the highest/lowest activity, or highest/lowest costs?) FC= unit VC= b) Based on the estimates from (a), what is the cost of producing87units? c) Explain why you cannot use the estimates from (a) to predict costs at 5,000 units