A company incurred the following monthly utility costs last year:
In January , 11,000 pounds of the product produced, at a cost of $5,500
In February, 9,000 pouds of the product produced, at a cost of 4,500
In March, 8,000 pound of the product produced, at a cost of 4,300
In April, 10,000 pounds of the product produced, at a cost of 5,000
In May, 13,000 pounds of the product produced, at a cost of 6,500
In June, 14,000 pounds of the product produced, at a cost of 7,200
In July, 7,000 pounds of the product produced, at a cost of 3,500
In August, 6,000 pounds of the product produced, at a cost of 3,200
In September, 5,000 pounds of the product produced, at a cost of 3,400
In October, 4,000 pound of the product produced, at a cost of 2,400
In November, 8,000 pounds of the product produced, at a cost of 4,200
In December, 10,000 Pouds of the prduct produced, at a cost of 4,900
a- Use the hig-low method to estimate the company's utilities cost behavior and state the cost formula.
b- Predict the utilities cost for a month in which 12,000 pounds of the product were produced.