Valley Dental Services is a specialized dental practice whose only service is filling cavities. Valley has recorded the following for the past nine months.

Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Using these estimates, calculate Valley’s total cost for filling 500 cavities.
2. How closely does your estimate match the actual cost for March? Why would these be different?

Number of Month Cavities Filled Total Cost January February March 625 $2,800 700 2,900 500 2,100 April 425 2,000 May 450 2,200 June 300 1,700 July 375 1,800 August 550 2,400 September 575 2,600