7.14 5 points Exercise 6-25 Estimating Cost Behavior; High-Low Method (LO 6-1, 6-2, 6-5) Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Pints of Applesauce eBook o Month January February References March April May June Produced Energy Cost 117,000 $71,400 75,000 65,700 78,000 68,400 84,000 69,150 102,000 69,900 108,000 70,650 July 132,000 71,100 August 102,000 69,600 September 102,000 70,200 October 96,000 69,300 November 135,000 73,500 December 129,000 71,800 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y= a+ bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 86,000 pints of applesauce are produced