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

Month	Number of Customers	Customer Service Costs
January	355	$	527,078
February	416		544,180
March	300		482,430
April	535		667,500
May	399		530,350
June	456		656,760
July	365		543,650
August	494		680,300
September	344		487,110
October	540		709,950
November	442		628,880
December	414		541,900

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 690.

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

Intercept:	163,651.18
Coefficient of X-variable:	995.31
Adjusted R square:	0.88

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.)