Which method provides the best estimates of fixed and

Question

Lancer Audio produces a high-end DVD player that sells for $1,300.Total operating expenses for the past 12 months are as follows:

Required:

a. Use regression analysis to estimate fixed and variable costs.

b. Compare your estimates to those obtained using account analysis (Problem 4-2) and the high-low method (Problem 4-3).Which method provides the best estimates of fixed and variable costs? (Round all answers to the nearest dollar.)