Required information [The following information applies to the questions displayed below.) Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Account Supplies Supervision Truck expense Building leases Utilities Warehouse labor Equipment leases Data processing equipment Other Total Operating cost $ 721,000 229,000 1,390,000 867,000 217,000 848,000 747,000 945,000 833,000 $6,797,000 Behavior All variable $164,000 Fixed $182,000 Fixed $543,000 Fixed $130,000 Fixed $139,000 Fixed $614,000 Fixed All fixed $390,000 Fixed Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. Month 1 2 6 7 8 9 10 11 12 Cases 274,000 340,000 275,000 406,000 371,000 349,000 392,000 436,000 390,000 389,000 409,000 437,000 Price Index 119 110 124 126 116 128 124 125 126 138 135 139 Operating costs $5,699,151 5,806,650 5,849,917 5,927,629 5,939, 147 6,043,376 5,918,507 6,133,880 6, 126,142 6,186,637 6,208,811 6,362,267 These data are considered representative for both past and future operations in Brazil. b. Use the high-low method to compute an estimate of operating costs assuming that 450,000 cases will be shipped next month. (Round variable cost to 5 decimal places. Round intermediate calculations and final answer to nearest whole dollar amount.) Answer is complete but not entirely correct. Estimate of operating cost $ 6,415,154 e. Select the most appropriate estimate for the given circumstances. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Multiple regression 2 Simple regression 1 Controller's analysis 2 High-low method