First Town Mortgage specializes in providing mortgage refinance loans. Each loan customer is charged a $500 loan processing fee by First Town when the loan is processed. FirstTown's costs over the past year associated with processing the loans follow:

Required
a. Use the high-low method to estimate fixed and variable costs.
b. Based on these estimates, calculate the number of loans that must be made to break even. (Round to the nearest whole unit.)
c. Estimate total profit in a month when 275 loans are processed. (Round to the nearest dollar.)
d. Prepare a scatter graph of loan processing cost (vertical axis) and number of loans processed (horizontal axis).
e. Comment on whether the high-low method produces a reasonable estimate of costs. Look at whether the relationship between the number of loans processed and the cost is linear. Are there any outliers? Does an outlier affect the high-low estimate?

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Loans Processed Cost January February March 190 $50,030 170 48,550 200 50,810 April May June 211 51,012 235 52,012 285 54,530 July August September 55,725 310 240 54,420 219 51,180 October 185 49,700 November 175 49,000 December 49,290 180