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You are Capable of Amazing Things (YCAT) is in the process of determining how their costs behave. Cost information for the previous four months is

You are Capable of Amazing Things (YCAT) is in the process of determining how their costs behave. Cost information for the previous four months is provided below.

Month Total Costs Total Units
June $92,000 3,300 units
July $124,000 4,200 units
August $103,000 2,900 units
September $118,000 4,500 units

YCAT sells each unit for an average unit selling price of $46. Their normal operations are between 2,500 and 5,000 produced units each month. Using the provided information, answer the following questions.

YCAT estimates that 5,300 units will be produced in October. Can the derived cost behavior equation be accurately used to calculate total costs? Why or why not? Please provide your answer in the box provided below.

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