The Macondo Accounting Service has the following monthly telephone records and costs:

Calls Costs

2,000 $2,400

1,500 2,000

2,200 2,600

2,500 2,800

2,300 2,700

1,700 2,200

1. Use the high - low method to estimate the variable cost and the fixed cost per month.

2. Predict the total cost that will be incurred during a month when 1,200 calls are completed. Show the formula.