Westminster Company has had the following experience over the past five quarters:

Units producedElectricity cost ($)

27,000 ................................$101,000

32,000 ................................$120,000

31,000 ................................$116,000

20,000 ..................................$84,000

22,000..................................$90,000

Using the high-low method, determine an equation for electricity cost (Y) as a function of units produced (X). Assume a linear function. Using your equation, forecast electricity cost at a volume of 25,000 units produced.

a) Using the high-low method, determine an equation for electricity cost (Y) as a function of units produced (X). Assume a linear function.

b) Using your equation, forecast electricity cost at a volume of 25,000 units produced.