PART 1 - Problems 1.1 Cost Behaviour - Chapter 3 Markham Theatre Company is interested in estimating fixed and variable costs. The following data are available: Table A Number of Month Costs Tickets Sold January $160,000 19,000 February $190,000 22,000 March $215,000 28,000 April $217,000 29,000 May $209,500 29,500 June $194,500 24,500 July $240,000 35,000 August $172,000 20,000 September $185,000 22,000 October $202,000 26,000 November $191,500 23,500 December $207,000 30,000 Required: a) Using the high-low method of cost estimation: i. what is the variable cost per ticket sold? ii. what is the fixed portion ($) of the theatre costs? b) Using the high-low method of cost estimation, express the total costs (fixed costs per month and variable costs per ticket) in equation form. c) Markham Theatre is considering an advertising campaign that is expected to increase annual sales by 15,000 tickets. Assume that the ticket selling price is $25. Ignoring the cost of the advertising campaign, which has not been provided, what is the expected increase in profits associated with the advertising campaign