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Question - ABC Company maintains a heavy schedule of maintenance for its fleet of trucks. It regularly checks its cost behavior every six months. The following information from the company is presented below:
Month
Hours Maintenance
Cost
January
53,000
$600,000
February
55,000
700,000
March
47,000
550,000
April
51,000
650,000
May
45,000
500,000
June
49,000
610,000
Required -
A. Using High-Low method, compute the fixed and variable portions of the maintenance costs.
B. Provide the predictive equation derived from the data above.
C. Using the predictive equation, predict what the total cost would be at 60,000 hours of maintenance.
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