ALHIEVE ENG HA2011 REVISION QUESTIONS Question 1 (15 marks) - Topic 2 Inspire Limited, a management consultancy a management consultancy firm. has operating hours fluctuate from week to week. Its IT cost and hours of operation for the last six weeks are Week Hours of operation e last six weeks are as follow: IT cost 45 1,010 1,380 64 1,470 70 5 1,440 45 980 40 960 Required: a) Use the high-low method to estimate the cost behaviour for the firm's power costs, assuming that variable costs vary in proportion to the hours of operation. EXP the cost behaviour in a cost function (Y = a + bx). (10 marks) b) During the second week of November, Inspire Limited will be opened for 51 hours. Predict the firm's total IT cost for the week. (5 marks) (10 + 5 = 15 marks)