Required: Write a 1-2 page (single spaced) memo, as the CFO of Higgins River Kayaking, addressed to Maiko Johnson describing your analysis and the outcomes. Make sure you respond to the following items: 1. Of the three cost estimation methods covered in this class (high-low method, scatter diagrams, or least squares regression), which would give the most accurate cost estimates? Explain why that method is more accurate, and how it works. 2. Which of the two variables (number of reservations or gas price) is a better predictor of fuel costs? Attach a financial analysis (e.g., graphs or tables), either at the end of the memo or as a separate file, to illustrate your response. 3. Using the method selected in requirement (1), develop a cost estimating equation for fuel costs at Higgins River Kayaking. Identify the fixed and variable cost components of your cost estimating equation, and explain what they mean. 4. Explain to Maiko how she could use this cost estimation analysis to improve her process of replenishing the fuel cost bank account at the beginning of each week, taking into consideration her goals of minimizing both risk of overdraft and risk of fraud. Be specific, document the improved process in detail. Cost estimation analysis is an important topic to manage cost. There are different costs that exist in Maiko's current account. One of the most transparent ways of estimating the cost of a project is to base it on previous work. 5. Conclude with any further recommendations resulting from your analysis. Rubric: OABC format 2 points Body: method selection question 2 points Body: cost equation question 2 points Body: using cost equation question 2 points Body: recommendations 2 points Appendix: financial analysis formatting 2 points Appendix: variable selection question 2 points Proofreading 2 points Peer evaluations 4 points Total 20 points