3. Greyjoy Ltd operates a package holiday company in Cardiff. The company has a reliable budgeting process from which the following information has been obtained: Sales of holidays (units) May 500 June 800 July 1000 Costs: Staff Salaries Food Administration costs Repairs and maintenance Depreciation on office equipment Hotel costs Office rent Agents' commission 196,000 196,000 7,500 12,000 40,000 40,000 40,000 64,000 20,000 20,000 75,000 102,000 28,000 28,000 27,000 42,000 196,000 15,000 40,000 80,000 20,000 120,000 28,000 52,000 Required: (a) Using the high-low method, calculate the linear cost equation in the form Y = a+bx for each semi-variable cost included in the budget above. (10 marks) (b) Using the linear cost equations, where appropriate, prepare the total budget for the month of August. The company is expecting to make sales of 1,400 holidays. (14 marks) (c) What cost estimation issues might the company face with a sudden 100% increase in demand? Note: Maximum word limit of 100 words (6 marks)