Question 1 ABC company incurred the following maintainance costs during the past 6 months Table 1 Months Machine hours Cost 1 2200 8560 2 1000 4200 3 1200 5920 4 1600 6280 5 1300 4020 6 1900 7020 7 2000 8400 8 2300 9500 9 900 3200 REQUIRED Question 1 1. Use a scatter graph and the two points that seem to best represent the relationship between cost and activity levels of 1000 and 2000 machine hours. Use these two points, estimate the variable cost and the fixed cost [components of maintenance costs] 2. Develop a cost function that the company can use to estimate maintenance cost at different volume levels 3. Estimate maintenance costs for July if the company expects to use 2800 machine hours