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The following information drawn from ABC Corporation about maintenance costs in 2020. (5.0 marks) Month Maintenance hours Total maintenance costs (SR) 75,000 81,000 July August

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The following information drawn from ABC Corporation about maintenance costs in 2020. (5.0 marks) Month Maintenance hours Total maintenance costs (SR) 75,000 81,000 July August 5,000 5,500 Required: a. Estimate the cost function for ABC using the TWO level method. b. Predict maintenance costs if maintenance hours are 7,000 hours in January 2021. C. ABC company has a single product, sales SR300, 000, variable costs SR 180,000, and fixed costs SR 90,000, net income SR 30,000 (2.5 marks). Required: a. Compute operating leverage b. If sales increased by 5%, what is the effect on net income as a percentage

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