This one I'm not too sure about. I figured I'd better ask the subject matter experts. Havent done accounting in my life and they added these math problems into our class. Thanks for your support:)

[The following information applies to the questions displayed below.]

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 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		530			$	4,882
February		450				4,160
March		270				2,750
April		490				4,260
May		340				2,970
June		440				4,190
July		360				3,040
August		400				3,600
September		460				4,030
October		370				3,200
November		360				3,170
December		330				3,070
Total		4,800			$	43,322
Average		400	*		$	3,610	*

*Rounded

Required:

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.)

Monlty Maintenance Cost = ___________ + _______________