PROBLEM 4-4. Regression Analysis (see Appendix) Rykor Electronics produces a high-end compact disc player that sells for $1,200. Total operating expenses for the past 12 months are as follows:

Units Produced and Sold Cost August 125 $107,670 September 145 116,990 October 150 124,500 November 160 126,500 December 165 134,700 January 140 112,400 February 145 120,600 March 135 110,400 April 130 111,140 May 135 114,200 June 145 116,700 July 140 115,760 Required

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

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