• Prime Fitness Gyms wants to understand the relationship between its operating costs and membership numbers.
• Data Overview:
  • Month 1: Total Costs: $40,000, Members: 800
  • Month 6: Total Costs: $60,000, Members: 1,200
• Required Analysis:
  • Use the High-Low Method to find the variable cost per member and fixed costs.
  • Develop a cost equation.
  • Estimate the total costs for 1,500 members.
  • Discuss strategies for managing costs with fluctuating membership levels.