Problem 2 (10 points) 3 (High Low Method) Nease Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven January 10,000 $15,000 March 9,000 February 8,000 $14,500 April 7,500 Instructions Compute the variable and fixed cost elements using the high-low method. Total Cost $12,500 $12,000 Problem 3 (15 points) Contr Margin Ace Company makes 2 products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 4,000 2.500 Sales $60,000 $25,000 Variable costs 36,000 7,000 Fixed costs 9.000 9.000 Net income $15.000 S. 9,000 Profit per unit $3.75 $3,60 Instructions Ace has unlimited demand for both products. Therefore, which product should Ace tell his sales people to emphasize? Show contribution margin calculation