The following information is available for a company’s maintenance cost over the last seven months. Month Maintenance Hours Maintenance CostJune 9 $5,450July 18 6,900August 12 5,100September 15 6,000October 21 6,900November 24 8,100December 6 3,600Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hourTotal cost at the high pointVariable costs at the high point:Volume at the high point:Variable cost per maintenance hourTotal variable costs at the high pointTotal fixed costsTotal cost at the low pointVariable costs at the low point:Volume at the low point:Variable cost per maintenance hourTotal variable costs at the low pointTotal fixed costs

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.