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Problem $8-49$ Cost Estimation; High$-$Low Method; Regression Analysis $[$LO $8-3]$

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Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further analysis, Paige Jennings, the controller, wants to test different forecasting methods and then use the best one to forecast quarterly expenses for $2019.$ The relevant quarterly data for the previous three years follow:

$\backslash$table$[[\backslash$table$[[2016],[$Quarter$]],\backslash$table$[[$Return$],[$Expenses$]],\backslash$table$[[2017],[$Quarter$]],\backslash$table$[[$Return$],[$Expenses$]],\backslash$table$[[2018],[$Quarter$]],\backslash$table$[[$Return$],[$Expenses$]]],[1,$$$14,100,1,$$$14,500,1,$$$15,000$