Question 1 Nation's Capital Fitness, Inc., operates a chain of fitness centers in the Washington, D.C., area. The irm's controller is accumulating data to be used in preparing its annual profit plan for the coming ear. 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 onth Service Costs January 510 $ 4,270 February 490 4,260 March 280 2,920 April 500 4,350 310 2,860 Hune 480 4,200 uly 320 3,000 August 400 3,600 September 470 4,050 October 350 3,300 November 340 3,160 December 320 3,030 Total 4,800 $ 43,200 1. Identify the variable cost per unit by using the high-low method. 2. Identify the total fixed cost by using the high-low method. 3. Develop a cost formula to express the cost behavior. 4. Find total cost when 635 hours of services are performed. Required: Write your answer in the following format. Show your calculations. Do not copy the questions