ABC Clinic provides a variety of basic medical services in a shopping mall location. It has extended hours on evenings and weekends, which make it a convenient place to receive basic medical care.

Susanna Shuman, clinic manager, has been analyzing the clinic's profitability. During the first year of the operation, the clinic, on average, charged a little over $100 per visit and was barely profitable.

Susanna obtained the following monthly costs and patient numbers for Year 1:

Month	Patients	Total Cost
January (1)	100	$10,000
February (2)	105	$11,000
March (3)	110	$10,500
April (4)	112	$11,500
May (5)	110	$11,000
June (6)	114	$11,500
July (7)	120	$13,000
August (8)	121	$12,500
September (9)	115	$12,000
October (10)	131	$12,500
November (11)	125	$12,000
December (12)	126	$12,500
Totals for the year	1,389	$140,000

Questions:

1. What is the best regression estimate of fixed and variable costs for ABC Clinic?

2. What are the total variable costs for Year 1 per the regression equation?

3. What are the total fixed costs for Year 1 per the regression equation?

4. What would be a reasonable estimate of total cost for January of Year 2?

5. With only a 5 percent risk of being wrong, would you accept without investigation a January of Year 2 actual cost figure of $13,950?