Simless Production Company reported the following production costs for the 6 months January through June 2019. Month, 2019 Total production cost $ Units produced Jan 460,000 300 Feb 300,000 220 Mar 480,000 330 Apr 700,000 450 May 570,000 410 June 250,000 150

1. Using the information given, perform the four steps of the high-low method to estimate costs and state your results in cost equation form Y = f + vX.

2. Assume Simless Company, produced 400 units for the month of July 2019. Calculate total production costs for the month.

3. What is the potential weakness in using this approach to estimate costs?