• Urban Bikes, a bike-sharing company, is reviewing its maintenance costs related to the number of bikes serviced.
• Data Overview:
  • Month 1: Total Costs: $8,000, Bikes Serviced: 200
  • Month 6: Total Costs: $12,000, Bikes Serviced: 300
• Required Analysis:
  • Use the High-Low Method to calculate the variable cost per bike serviced and fixed costs.
  • Develop a cost equation.
  • Estimate the total costs for servicing 400 bikes.

Discuss strategies for improving maintenance efficiency and reducing costs.