ABC company incurred the following maintainance costs during the past 6 months Table 1 Months Machine hours Cost $ 1 20 4560 2 40 9780 3 50 10920 4 60 11280 5 30 6320 6 90 18920 7 25 5140 8 43 10500 9 70 12400

REQUIRED Part 1 A. Use the data on Table 1 , estimate the variable and fixed cost of the company using the high and low method B. Develop a cost function for the company. C. Estimate the maintenance cost if 120 machine hours were used in July Part 2 1. Use a scattergraph and the two points that seem to best represent the relationship between cost and activity levels of 900 and 300 machine hours. Use these two points , estimate the variable cost and the fixed cost [ components of maintenance costs] 2. Develop a cost function that the company can use to estimate maintenance cost at different volume levels 3. Estimate maintenance costs for July if the company expects to use 2800 machine hours