What are the advantages of the scatterplot method over the high-low method? The high-low method over the scatterplot method? Describe the method of least squares. Why is this method better than either the high-low method or the scatterplot method? What is meant by the best-fitting line? Is the best-fitting line necessarily a good-fitting line? Explain. When is multiple regression required to explain cost behavior? Explain the meaning of the learning curve. How do managers determine the appropriate learning curve percentage to use? Assume you are the manager responsible for implementing a new service. The time to form the service is subject to the learning curve. Would you prefer that the new service haw a learning rate of 85 percent or 80 percent? Why? Some firms assign mixed costs to either the fixed or variable cost categories without any formal methodology to separate them. Explain how this practice can be defended. Callie's Gym is a complete fitness center. Owner Gallic Ducain employs various fitness who are expected to staff the front desk and to teach fitness classes. While on the front trainers answer the phone, handle walk-ins and show them around the gym, answer questions about the weight machines, and do light cleaning (wiping down the equipment vacuuming the floor). The trainers also teach fitness classes (e g., pilates, spinning, body according to their own interest and training level. The cost of the fitness trainers is $600 month and $20 per class taught, Last month, 100 classes were taught. Required: 1. Develop a cost equation for total cost of labor. 2. What was total variable labor cost last month? 3.What was total labor cost last month? 4. What was the unit cost of labor (per class) for last month? 5. What if Callie increased the number of classes offered by 50 percent? What would be total labor cost? The unit labor cost? Explain why the unit labor cost decreased