Darwin's HighFlyer Hotel has spare laundry capacity and is considering offering a laundry service to the Luigi Brothers, who own three Italian restaurants. To aid deliberations concerned with what rate should be quoted when offering the service, the Laundry Manager has asked for your assistance in analysing the laundry department's fixed and variable costs. From her departmental records, the Laundry Manager has extracted the following schedule of cost information. Month Laundry costs $ July 22,000 August 21,600 September 21,800 October 20,800 November 20,720 December 20,400 Kilograms of laundry processed 20,000 19,500 19,750 18,500 18,400 18,000 Required: a. Use the high-low method to determine the laundry department's fixed and variable cost structures. b. Provide an estimate of the total cost if 25,000 kilograms of laundry were processed in a month