PROBLEM 4-4. Regression Analysis (see Appendix) [LO 1 and Appendix] Lancer Audio produces a high-end DVD player that sells for $1,300. Total operating expenses for the past 12 months are as follows:

all T-Mobile 09:47 97% D O 162 71 OOO PROBLEM 4-3. High-Low, Break-Even [LO 1, 2] Lancer Audio produces a high-end DVD player that sells for $1,300. Total operating expenses for the past 12 months are as follows: Units Produced and Sold Cost August 165 $140,345 September 130 1 16,990 October 150 130,650 November 145 127,670 December 155 133,790 January 170 143,910 February 140 123,520 March 150 130,950 April 145 127,385 May 150 129,865 June 140 122,720 July 135 120,255 REQUIRED a. Use the high-low method to estimate fixed and variable costs. b. Based on these estimates, calculate the break-even level of sales in units. (Round to the nearest whole unit.) c. Calculate the margin of safety for the coming August assuming estimated sales of 175 units. d. Estimate total profit assuming production and sales of 175 units. e. Comment on the limitations of the high-low method in estimating costs for Lancer Audio. PROBLEM 4-4. Regression Analysis (see Appendix) [LO 1 and Appendix] Lancer Audio pro- duces a high-end DVD player that sells for $1,300. Total operating expenses for the past 12 months are as follows: Units Produced and Sold Cost August 165 $140,345 September 130 1 16,990 October 150 130,650 November 145 127,670 December 155 133,790 January 170 143,910 February 140 123,520 March 150 130,950 April 145 127,385 May 150 129,865 June 140 122,720 July 135 120,255 R a on analysis to estimate fixed and variable costs. Round to two ded > b. Compare your estimates to those obtained using account analysis (Problem 4-2) and the high- low method (Problem 4-3). Which method provides the best estimates of fixed and variable costs