Exercise 3 Dania Fitness Company operates a chain of fitness centers in Sintok area. The company's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the company's equipment maintenance costs must be determined. The accountant has suggested the use of an equation, in the form of Y = a + bx, for maintenance costs. Company's last year data is as follows: Month January February March April May June July August September October November December Hours of Maintenance 1,400 1,200 1,100 2,600 1,800 2,000 2,400 2,200 1,000 1,300 1,600 1,800 Maintenance Costs (RM) 11,350 11,350 11,050 12,120 11,400 12,000 12,550 11,100 10,200 11,250 11,300 11,700 REQUIRED: (a) Using the high-low method, calculate the variable and fixed cost components in the maintenance costs of Dania Fitness Company, (b) Write the high-low equation for the maintenance costs. (c) Using your answer in requirement (b), calculate the predicted maintenance costs at 2,300 hours of activity