Problem 1. (20 Points).

The following information is available for Alba Company's maintenance cost over the last four months.

Month	Maintenance hours	Maintenance cost
January	150	$6,000
February	120	$5,100
March	240	$8,100
April	210	$6,900

1. Use the high-low method to estimate both the fixed and variable component of its maintenance cost. (15 Points).
2. Estimate maintenance cost of 200 maintenance hours using the estimate you calculated in (a) above. (5 Points).

Problem 2. (20 Points).

A company manufactures a product and sells it for $120 per unit. The total fixed costs of manufacturing and selling the product are expected to be $155,250, and the variable costs are expected to be $75 per unit.

What is the company's break-even point in

1. units? (10 Points).
2. dollar sales? (10 Points).