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Nations Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firms controller is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the firms 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:

Month	Hours of Maintenance Service				Maintenance Costs
January		550			$	5,003
February		490				4,250
March		260				2,770
April		450				4,280
May		360				2,990
June		440				4,200
July		360				3,060
August		410				3,590
September		480				3,960
October		390				3,210
November		380				3,250
December		350				3,090
Total		4,920			$	43,653
Average		410	*		$	3,638	*

*Rounded

rev: 05_30_2018_QC_CS-128090

Required:

1. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nations Capital Fitness, Inc. Express the cost behavior pattern in equation form. (Round coefficient of X to 2 decimal places and other answer to the nearest whole dollar amount.)

monthley maintenance cost = + x