E5-3 The controller of Furgee Industries has collected the following monthly expense data for use in the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours January February March April May $ 2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 690 400 700 (a) Determine the fixed- and variable-cost components using the high-low method (b) Prepare a graph showing the behavior of maintenance costs, and identify the fixed- and variable-cost elements. Use 100-hour increments and $ 1,000 cost increments. E5-9 The Green Acres Inn is trying to determine its break-even point. The inn has 50 rooms that it rents at S 60 a night. Operating costs are as follows. Salaries Utilities Depreciation Maintenance S 6,200 per month $ 1,100 per month $1,000 per month $100 per month S11 per room $ 28 per room Other costs Determine the inn's break-even point in (e) number of rented rooms per month and (b) dollars. E5-15 Cottonwood Company reports the following operating results for the month of August: sales S 400,000 (units 5,000); variable costs $ 210,000; fixed costs $ 90,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 45% ofsales. Instructions Compute the net income to be earned under each alternative. Which course of action wil produce the highest net income