Analyzing Mixed Costs Using Scattergraph, High-Low, and Least-Squares Regression Methods

Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfields business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfields operating information for the first six months of the year follows:

Month	Number of Bottles Sold	Operating Cost
January	990	$	10,500
February	1,370		15,750
March	1,750		15,940
April	2,350		19,570
May	3,440		27,150
June	3,650		34,840

Required :
3.	Using the high-low method, calculate Garfields total fixed operating costs and variable operating cost per bottle. (Do not round your intermediate calculations and round your variable cost answer to 2 decimal places.)

Variable Cost	??????
Fixed Cost	?????

4.

Perform a least-squares regression analysis on Garfields data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 3 decimal places.)

	Coefficients
Intercept	???
X Variable 1	???