The Company does not currently allocate selling and general expenses and thus evaluates segment-level profitability based on gross margin per unit. The KEURIG segment manger proposes launching a new single-serve coffee pod flavor with a new production process and estimated total production costs as:

Y = $250,000 + $1.50X

Identify ONE concern you would have for each of the following cost estimation method potentially used by the Keurig segment manager to generate the above total production cost function.

a.Engineering method

b. Account analysis method

c. High Low method

d. Regression analysis method