As the new manager of a local fitness club, Just -for-You Fitness, you have been studying the club's financial data. You would like to determine how the club's costs behave in order to make accurate predictions for next year. Here is informatio from the last six months: E(Click on the icon to view the information.) Read the requirements. Requirement 1. By looking at the Total Operating Costs and the Average Operating Costs per Member, can you tell whether the club's operating costs are variable, fixed, or mixed? Explain your answer. By looking at Total Operating Costs," we can see that the club's operating costs are not purely the "Operating Costs per Member" can see that the operating costs fixed; otherwise, total costs would remain constant. By lookinga re not purely variable; otherwise, the "per-member cost would remain constant. Therefore, the club's operating costs are mixed. Requirement 2. Use the high-low method to detemine the club's monthly operating cost equation. First, detemine the formula and calculate the variable cost per unit (the slope of the mixed cost line), (Round vour answer to the nearest cent.) Variable cost per unit 1. By looking at the Total Operating Costs and the Average Operating Costs per Member, can you tell whether the club's operating costs are variable, fixed, or mixed? Explain your answer. Use the high-low method to determine the club's monthly operating cost equation 2. 3. Using your answer from Requirement 2, predict total monthly operating costs if the club has 580 members. Can you predict total monthly operating costs if the club has 3,000 members? Explain 4. your answer. 5. Prepare the club's traditional income statement and its contribution margin income statement for the month of July. Assume that your cost equation from Requirement 2 accurately describes the club's cost behavior. The club charges members $42 per month for unlimited access to its facilities. 6. Perform regression analysis using Microsoft Excel. What is the monthly operating cost equation? What is the R-square? Why is the cost equation different from that in Requirement 2? LO Club Membership Total Average Operating Operating Costs Month (number of members) Costs per Member 9,200 July 410 22.44 August 450 9,800 21.78 $10,500 September. 530 19.81 October 460 $10,600 23.04 November 540 11,085 20.53 $ 10,100 December 510 19.80