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Brisbane Indoor Sports, a sporting complex, has opening hours that fluctuate from month to month. The electricity costs and hours of operation for past six months is listed below:
Month Total hours of operation Total electricity cost
January 650 $ 4 240
February 700 $ 4 400
March 800 $ 4 800
April 600 $ 4 200
May 550 $ 3 700
June 500 $ 3 600
Required:
Question 1: Use the high-low method to estimate the cost behaviour for the complex's electricity costs, assuming that the variable costs vary in proportion to the hours of operation. Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation?
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