The controller of Loran Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs

Instructions(a) Determine the fixed and variable cost components using the high-low method.(b) Prepare a graph showing the behavior of maintenance costs, and identify the fi xed and variable cost elements. Use 200 unit increments and $1,000 cost increments.

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Total Maintenance Costs $2.400 3,000 3,600 4,500 Total Machine Hours Month January February March April May June 300 400 600 790 3,200 4.900 500 800