• GigaNet Telecom is evaluating its data transmission costs to optimize pricing strategies for its services.
• Data Overview:
  • Quarter 1: Total Costs: $800,000, Data Transmitted: 10,000 terabytes
  • Quarter 4: Total Costs: $1,200,000, Data Transmitted: 15,000 terabytes
• Required Analysis:
  • Implement the High-Low Method to determine the variable cost per terabyte and fixed costs.
  • Construct the cost equation from your analysis.
  • Predict costs for a future quarter where 18,000 terabytes are expected to be transmitted.
  • Analyze the cost implications of increasing data transmission by 20%.