HP Inc. analyzes the behavior of its manufacturing costs. In August 2042, the following data is provided:

• Total Costs at 75% Capacity: $7,500,000
• Total Costs at 50% Capacity: $5,000,000

Requirements:

• Determine the fixed and variable components of the total cost.
• Calculate the cost behavior equation.
• Prepare a cost prediction for 85% capacity.
• Analyze the impact of cost behavior on pricing decisions.