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 applesauce. Apples can be stored for several months in cold storage, so applesauce to produce and package production is relatively uniform throughout the year. The recenty hired controller for the firm is about to apply the high-low The following costs were incurred during the past 12 months: method in estimating the company's energy cost behavior Pints of Applesauce Month Jandary FebruarY March April May June July August Cost 122,000 $71.900 63,200 69 400 69-900 70 400 70 900 71-600 70 100 70.700 69 800 74,000 72.050 80 ,000 83,000 89,000 107,000 113,000 137,000 107,000 September 107 000 101.000 140,000 134 000 October November Required: I. 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 Ydenotes energy cost for a month and Xdenotes pints of applesauce produced 2. Predict the energy cost for a month in which 91.0o0 pints of applesauce are produced