Question-1 Marks 10

Pharma Hill Company accumulates the following data for the period of six months:

Unit Heat expense

January 2400 4,000

February 2300 4,300

March 2200 4,200

April 2000 4,000

May 1800 3,800

June 1900 3,900

Required:

a) Separate the variable and fixed elements using high-low method.

b) Express this cost behavior in equation form

c) Calculate heat expense at 2100 units.