Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years.

Number of Visitors per Year(thousands)Maintenance Costs

($000)1,900$5,1802,0805,6753,6009,600

Required:

a.Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor.

b.The company expects a record 2,300,000 visitors next year. What would be the estimated maintenance costs?

Required A

Variable costs per visitor:

Annual fixed cost:

Required B

Estimated maintenance costs: