Wine Depot		Month	Units Sold	Selling Expense
Ch 07-08		Jan	10,000	$ 28,000
Predicting Costs		Feb	12,000	$ 36,000
		Mar	18,500	$ 50,000
		Apr	16,000	$ 27,000
		May	14,000	$ 24,000
		Jun	6,500	$ 18,000
a. Clculate variable cost per unit sold, fixed costs, and a prediction ofselling expense when 19,000 units are sold using the Hi-Lo method.
High Expense
Low Expense
Difference
b. Calculate variable cost per unit sold, fixed costs, and a prediction ofselling expense when 19,000 units are sold using the Least Squares/Regression method.
Hi-Lo Method
Variable cost/unit sold
Fixed cost
Prediction of selling expense with	19,000	units sold =
c. Display a chart of selling expense/units sold with a trend line. (Be sureto modify each axis so your scatter diagram is better displayed as youdid earlier in this chapter.)
Least Squares / Regression Method
Variable cost/unit sold
Fixed cost
Prediction of selling expense with	19,000	units sold =