Siders their maintenance expense to have a fixed portion and a variable portion that changes in 97 relation to their production. They have collected the following production data and expense costs for the past seven 98 month. Using the information provided, use the high-low method to separate the fixed costs from the variable 199 costs. 200 201 Month Production Quantity Maintenance Cost 202 March 52,000 $5,350 203 April 58,000 $5,140 204 May 60,000 $5,400 205 June 64,600 $5,980 206 July 54,000 $5,300 207 August 59,000 $5,560 208 September 61,000 $5,670 209 210 a) Calculate the five Calculate the fixed and variable portion of the maintenance expense using the high-low method, Cost June High Production Low Production Change Production 64,600 52,000 12,600 March $5,980 $5,350 $630 Variable Costs $0.05 Fixed Costs $2,750 1 b) Global Solutions expects production for October to be 57,500 units. What is the estimated maintenance cost, based on the 2 information calculated in part a)? 23 24 25 Estimated maintenance costs S5.625