A staff meeting has been called at SportsLab, a drug-testing facility retained by several professional and college sports leagues and associations. The chief of testing, Dr. Hyde, has demanded an across-the-board increase in prices for a particular test because of the increased testing and precision that are now required. The administrator of the laboratory has asked you to measure the mixedcost behaviour of this particular testing department and to prepare a short report she can present to Dr. Hyde. Consider the following limited data:

Plot these three data points on a graph. Considering this graph and Dr. Hyde’s instructions, what would be the best approach for estimating fixed-cost behaviour? (You are not required to perform calculations.)

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Average Test Procedures per Month Average Monthly Cost of Test Procedures Monthly averages, 2010 Monthly averages, 2011 Monthly averages, 2012 $ 60,000 400 80,000 500 600 140,000