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Exercise 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

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Exercise 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 Hours of Maintenance Maintenance Costs (RM) January 1,400 11,350 February 1,200 11,350 March 1,100 11,050 April 2,600 12,120 May 1,800 11,400 June 2,000 12,000 July 2,400 12,550 August 2,200 11,100 September 1,000 10,200 October 1,300 11,250 November 1,600 11,300 December 1,800 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

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