High-Low Method La Mia's Casas builds replicas of residences of famous and infamous people. The company is highly automated, and the new accountant-owner has decided to use machine hours as the basis for predicting maintenance costs. The following data are available from the company's most recent eight months of operations: Machine Hours Maintenance Costs 12,000 $4,410 3,600 5,040 21,000 10,500 18,000 9,000 27,000 24,000 3,300 5,880 2,640 3,060 3,600 16,500 a. Using the high-low method, develop the equation for predicting weekly receiving report costs based on the number of shipments received. Total cost = $ 7,500 + 0.18 x x b. Indicate whether each of the following statements is true or false based on the results of part (a). (1) Results indicate that as machine hours increase, maintenance cost decreases. True (2) The components of fixed and variable costs are unclear. False (3) Based on the data provided, the equation in part (a) functions correctly. True