Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The firm's controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firm's equipment maintenance costs must be determined. The accounting staff has suggested the use of the high-low method to develop an equation, in the form of Y= a + bX, for maintenance costs. Data regarding the maintenance hours and costs for last year are as follows: Hours of Maintenance Maintenance Month Service Costs January 550 $ 4,819 February 450 4, 170 March 280 2, 740 April 490 4,320 May 330 2,970 June 450 4, 110 July 350 3,070 August 450 3,560 September 480 3,960 October 360 3, 240 November 360 3, 190 December 350 3,030 Total 4,900 $43, 179 Average 408* $ 3,598* *Rounded1. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nation's Capital Fitness, Inc. Express the cost behavior pattern in equation form. (Round coefficient of X to 2 decimal places and other answer to the nearest whole dollar amount.) Monthly maintenance cost = + X1 Using your answer tr:- requirement 1, what is the variable component of the maintenance cost? {Round your answer to 2 decimal places} _ 3. Compute the predicted maintenance cost at 690 hours of activity. Maintenance cost4-a. Compute the variable cost per hour and the fixed cost per hour at 700 hours of activity. (Round your answers to 2 decimal places.) Variable cost per hour Fixed cost per hour 4-b. Why is the fixed cost per hour possibly misleading? O Because it will change as the number of hours changes. O Because it will not change as the number of hours changes