Nations Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firms controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firms 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: Nations Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area.

Data regarding the maintenance hours and costs for last year are as follows:

Monthly Hours of Maintenance Service Maintenance Costs

January 560 $ 5,264

February 450 $ 4,200

March 280 $2,800

April 470 $4,290

May 350 $2,990

June 450 $4,110

July 320 $3,050

August 430 $3,590

September 500 $4,040

October 380 $3,300

November 360 $3,170

December 360 $3,110

Total 4,910 $ 43,914

Average 409 * $ 3,660*

* *Rounded

1.Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nations 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.)

What's the monthly

maintenance cost=

+