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Required: 1. Using the highlow method of cost estimation. estimate the behavior ofthe maintenance costs incurred by Nation's Capital Fitness, Inc. Express the cost behavior
Required: 1. Using the highlow method of cost estimation. estimate the behavior ofthe maintenance costs incurred by Nation's Capital Fitness, Inc. Express the cost behavior pattern in equation form. [Round coefcient of Xto 2 decimal places and other answer to the nearest whole dollar amount.) w 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? (Round your answer to 2 decimal places.) \f4-a. Compute the variable cost per hour and the xed cost per hour at 630 hours of activity. {Round your answers to 2 decimal places.) Variable cost per hour _ Fixed cost per hour _ 4-b. Why is the xed cost per hour possibly misleading? 0 Because it will change as the number of hours changes. 0 Because it will not change as the number of hours changes.
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