Ron Lee, a marketing clerk for Star Agency, recorded the following information for last year:

Month	Number of Customers	Customer Service Costs
January	349	$	526,148
February	410		543,250
March	330		481,080
April	512		664,200
May	393		529,450
June	450		655,860
July	359		542,930
August	488		679,700
September	338		486,390
October	516		692,190
November	436		627,980
December	408		541,300

He would like to be able to estimate customer service costs using the number of customers as the basis for estimation. However, because he has never taken a course in managerial accounting, he does not know how to set up a cost equation. He has therefore approached you for help.

Required:

1. Set up a cost equation for monthly customer service costs using the highlow method.

2. Using the equation from part (1), compute the estimated customer service costs if the number of customers is expected to be 630.

3. You also used the least-squares regression method to do the analysis of the costs; the analysis resulted in the following output:

Intercept:	117,789.62
Coefficient of X-variable:	1,113.85
Adjusted R square:	0.90

Set up a cost equation using the above numbers. (Round the "Fixed cost" to the nearest dollar amount and "Variable cost" to 2 decimal places.)