Question:

Ava Inc., produces shovels and supplied the last year's information.

	No. of	Factory
Month	Shovels	Overhead
Jan	1,000	$1,805
Feb	1,200	$2,169
Mar	950	$1,810
Apr	1,050	$1,870
May	880	$1,701
Jun	1,150	$1,900
Jul	900	$1,580
Aug	1,100	$2,150
Sep	1,125	$2,125
Oct	1,350	$2,500
Nov	1,300	$2,590
Dec	1,075	$1,830

Required:

Using the high-low method answer the below noted questions.

The variable rate is $___________ per shovel.

Round your answer to the nearest penny.

Using the rounded variable rate you entered above, the fixed cost per month is $____________.

Round your answer to the closest DOLLAR.

The CEO would like to understand the high-low method.

From the list provided below, select the characteristic of the high-low method.

Enter the LETTER into the space provided. For example, if you choose b), enter only the letter b or B

Listing of choices:

a)	The method uses all data points.
b)	This method is subjective.
c)	This method excludes outliers automatically.
d)	This method is not objective.
e)	This method uses two data points.